2020 (12) TMI 293 - ITAT MUMBAI - Income Tax

Head Note / Extract:
Bogus purchases - estimation of income - assessee had failed to substantiate the genuineness and veracity of the purchase transactions under consideration - CIT-A estimated a G.P rate of 12% as a yardstick in respect of the unverified purchases made by the assessee in his garden maintenance and development segment of business - HELD THAT:- No infirmity either in confirming of the addition by the CIT(A) to the extent of the profit which the assessee would had made by procuring the goods from unverified parties, nor the methodology adopted by him for quantification of such profit element. In fact, we find no reason to take a view different from that arrived at by the Tribunal while disposing off the appeal in the assessee‟s own case for A.Y. 2010-11 [2017 (8) TMI 1623 - ITAT MUMBAI]As observed by us hereinabove, the CIT(A) while disposing off the assessee‟s appeal for A.Y.2010-11 had after analyzing all the facts of the case had estimated a G.P rate of 12% in respect of the garden maintenance and development segment. The aforesaid order of the CIT(A) was thereafter upheld by the Tribunal. As in the case before us the assessee had already declared a G.P rate of 14.23% which is already more than the rate 12% as had been approved by the Tribunal in the assessee‟s own case for A.Y. 2010-11, we, therefore, finding no reason to take a different view respectfully follow the same. Accordingly, finding no infirmity in the view taken by the CIT(A) we uphold his order. Appeal of the revenue is dismissed.