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2021 (9) TMI 879 - AT - Income TaxRectification of mistake u/s 254 - NP estimation on turnover - Additions towards Bogus bills for purchase of diamonds - HELD THAT:- Net Profit ratio is works out to 0.33% (₹ 1,33,921.90 X 100 / ₹ 4,05,50,960). Further, assessee had declared ₹ 40,45,000/- as excess stock not disclosed in the books of account during the course of survey proceedings U/s. 133A of the Act which has to be treated separately as undisclosed income and therefore, this amount cannot be included while computing the NP ratio of the assessee from its regular disclosed turnover in the books of accounts. Hence, the Net Profit arrived in the order of the Tribunal at 0.33% is in order. Bogus bills for purchase of diamonds and debited in its profit & loss A/c for which payments were made through cheques and the same was received back by way of cash and the assessee did not receive the diamonds. In such situation it is obvious that, it is nothing, but a bogus claim of expenditure recorded in the books of accounts of the assessee against which no revenue towards turnover could be attributed. Therefore, estimation cannot be made on the bogus purchases at 8 or 10 % as claimed by the assessee and the entire bogus claim of expenditure has to be disallowed which the Tribunal had correctly dealt with in its order. Hence, there is no mistake apparent on record in the Order of the Tribunal on this issue also - MA filed by the assessee is dismissed.
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