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2021 (1) TMI 1016 - AT - Income TaxReopening of assessment - HELD THAT:- The assessee has assailed the reopening before the CIT(A). No contrary material is available on record to rebut the findings of CIT(A). We find no reason to interfere with the order of CIT(A) on this issues. Accordingly, ground No.1 of the appeal is dismissed being devoid of any merit. Estimation of income - bogus purchases - CIT-A estimating GP at 12.5% - HELD THAT:- The assessee is in the business of trading of ferrous and nonferrous metals. The estimation of GP by CIT(A) is on the higher side. The GP in the trade of ferrous and non-ferrous metals is generally around 4% to 6%. In our considered view the ends of justice would meet if the GP on bogus purchases be estimated at 6%. We hold and direct accordingly. The ground No.2 of the appeal is partly allowed in the terms aforesaid. Disallowance on interest under section 36(1) (iii) - HELD THAT:- It is not emanating from records whether the assessee was having own sufficient funds for advancing of loans to its sister concern. The assessee has submitted that the advances have been given in connection with business. However, we find that there is no reference to the material by authorities below that have been placed on record by the assessee to substantiate that the advances were in respect of business transactions. In the absence of complete facts and reference to material brought on record by assessee, we deem it appropriate to restore this issue back to the file of Assessing Officer for fresh adjudication. While deciding this issue, the Assessing Officer shall also consider the applicability of decision rendered in the case of CIT vs. Reliance Utility Power Ltd. [2009 (1) TMI 4 - BOMBAY HIGH COURT].
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