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2019 (11) TMI 653 - AT - Income TaxBogus purchases - Addition as assessee had failed to produce bills, vouchers and other documentary evidences in support of his claim - CIT-A deleted the addition partly - HELD THAT:- We have gone through the impugned order and herd both the parties Ld. CIT(A) has mentioned several orders of the High Court and Co-ordinate Benches wherein similar facts and circumstances Tribunal as estimated the gross profit addition in the hands of the purchaser on account of such bogus purchases @ 12.5%. As decided in SHRI ASHWIN PURSHOTAM BAJAJ [2016 (12) TMI 879 - ITAT MUMBAI] conclusion of the Id. CIT(A) that the assessee has purchased material from some other dealers but quantitative reconciliation of the stock was duly done by the assessee of the sale and purchase and hence the profit element in this accommodation entries are to be added to the income cannot be faulted. The Id. CIT(A) restricted the addition by estimating GP ratio of 12.5% of ₹ 1,13,44,778/- being purchases from these alleged four accommodation entry providers. We do not find any infirmity in the well reasoned order of the Id. CIT(A) whereby net profit was estimated which was a reasonable estimation made by learned CIT(A) and we sustain/ affirm the order of learned CIT(A) - Decided against revenue
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