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2021 (9) TMI 177 - AT - Income TaxEstimation of income - GP estimation on bogus purchases - AO estimated GP on bogus purchases @ 12.5% - HELD THAT:- Assessee has declared GP of 9.42% on regular transactions. This GP has not been disturbed by the AO. In bogus purchase transactions, the modus operandi is that the purchases are made from grey market to save VAT and marginal purchase cost and matching bogus bills are obtained from accommodation entry providers. Taking into consideration entirety of facts, we are of considered view that the ends of justice would be met, if suppressed profit margin on bogus purchases as estimated at 5%. We hold and direct accordingly.
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