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2024 (2) TMI 1193 - AT - Income TaxEstimation of income - bogus purchases - HELD THAT:- We find that neither any detail on TDS of alleged commission was furnished nor any substantive evidence in the form of confirmation of parties or agreement/agency agreement was placed on record. We find that the CIT(A) recorded that a profit element in similar bogus purchases can only be brought to tax. Despite the fact that the CIT(A) restricted the addition to 0.50% without referring any material evidence available on record. We find that this combination in number of decisions wherein the purchases are shown from Gautam Jain, Bhanwarlal Jain or Rajendra Jain and Company, who were proved entry provider, similar addition was either restricted or enhanced to 6%. We further find a similar order was followed in the case of ITO Vs Rajesh Kumar Pamecha [2023 (1) TMI 1321 - ITAT SURAT], ITO Vs Mukesh Mahavirprasad Sen [2023 (1) TMI 1321 - ITAT SURAT] and other cases dated 13/01/2023. Therefore, taking a consistent view, the order of ld. CIT(A) is modified and the disallowance restricted to the extent of 0.50% is increased to 6% of the impugned purchases. We further find that in a similar case in PCIT Vs Surya Impex [2023 (1) TMI 835 - GUJARAT HIGH COURT] the Hon’ble Jurisdictional High Court affirms the decisions of this Tribunal on similar facts. Therefore, order of CIT(A) is modified and the assessing officer is directed to restrict the disallowance of purchases from there three parties be restricted to 6% of aggregate of purchase of Rs. 2.01 Crore. Grounds of appeal raised by the revenue are partly allowed.
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