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2022 (11) TMI 1165 - AT - Income Tax
Estimation of income - Bogus purchases - HELD THAT:- Since, the issue is squarely covered by the judgment of Pankaj K. Chaudhary [2021 (10) TMI 653 - ITAT SURAT] wherein Tribunal has sustained the addition @ 6% of bogus purchases.
Revenue submitted before us that u/s 37 the entire bogus purchases should be disallowed as the bogus purchase would not for the purpose of the business and therefore the 100% addition made by Assessing Officer may be sustained.
DR relied on the judgment of Co-ordinate Bench of ITAT, Mumbai in the case of Urmila & Co. Ltd. [2013 (11) TMI 477 - ITAT MUMBAI] However, we note that the judgment cited by Ld. DR is on different footing and does not applicable to the facts of the assessee’s case under consideration. Therefore, respectfully following the binding precedent of the Co-ordinate Bench of ITAT, Surat in the case of Pankaj K. Chaudhary [2021 (10) TMI 653 - ITAT SURAT] we partly allow the appeal of the Revenue.