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2021 (3) TMI 564 - AT - Income TaxEstimation of income - Bogus purchases - HELD THAT:- We find that the assessee is engaged into manufacturing and cutting of polishing of diamonds also. Moreover, exhaustive information has been obtained by DGIT investigation, Mumbai that the assessee has taken huge accommodation entry which is running into ten of crores of rupees from Rajendra Jain Group Company. Hence, the aforesaid decision referred by assessee’s counsel is not applicable here. In this case, we find that there is no enquiry by the AO relating to veracity of sales arising out of bogus purchases. Moreover, there is no examination of the production and other records of the assessee. AO has proceeded to allow relief to the assessee by adding only 12.5% and so the further relief granted by Revenue authorities are itself on hollow ground. But as noted above, Revenue’s appeal is not maintainable on account of low tax effect. Be that as it may, since, the ITAT in assessee’s own case [2018 (8) TMI 2019 - ITAT MUMBAI] has upheld the addition of 2% of the bogus purchases and no information has been furnished that the said order has been reversed by the Hon’ble Jurisdictional High Court, following the said precedent, we uphold the order of the CIT(A).
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