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2021 (4) TMI 231 - HC - Income TaxEstimation of income - bogus purchases - denial of natural justice - addition was made to the assessee’s taxable income by adopting the measure that 5% gross profit - as per assessee issuance of summons to the parties who had provided so-called bogus purchase bills and the receipt of information from one such party, was not put to the assessee - HELD THAT:- The assessee was not confronted with the material and, therefore, in our view, the assessment order was clearly in jeopardy. What the CIT(A) did, [which, in the given circumstances, insofar as the revenue is concerned, was the best way forward] is to sustain a part of the addition by taking recourse to the methodology adopted in the assessee’s case in an earlier AY i.e. 2006-2007. In that AY, concededly, addition had been made to the assessee’s gross income by applying a GP rate of 5%. It is the same methodology that the CIT(A) has adopted and, accordingly, sustained the addition. Therefore, in our view, given the findings of fact returned by the CIT(A), which have been sustained by the Tribunal, no interference is called for. No substantial question of law.
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