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2020 (1) TMI 851 - ITAT MUMBAIRevision u/s 263 - Bogus purchases - AO making disallowance @ 12.5% - HELD THAT:- Hon'ble Jurisdictional High Court in Mohommad Haji Adam & Co. [2019 (2) TMI 1632 - BOMBAY HIGH COURT] has held that even if the purchases are found to be bogus, however, the entire purchases cannot be added if the sales are not doubted or disputed. The Hon'ble Jurisdictional High Court held that in such circumstances, the addition can be made by applying the gross profit rate of normal purchases. Thus, in our considered opinion, the decision of the Assessing Officer in making addition applying the profit rate is in consonance with various judicial precedents available on the issue. Therefore, it cannot be considered to be an erroneous view as it is a possible view. Moreover, the allegation of learned Principal Commissioner that the Assessing Officer has overlooked the material on record and has not made any enquiry which ought to have been made, appears to be on wrong assumption of facts, hence, not tenable. In view of the aforesaid, we hold that in the given facts and circumstances of the case, the assessment orders passed cannot be held as erroneous and prejudicial to the interests of Revenue. That being the case, exercise of power under section 263 of the Act to revise the assessment orders is neither justified nor valid - Decided in favour of assessee.
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