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2017 (2) TMI 72 - AT - Income TaxEstimation of profit of 15% on the total alleged bogus purchases - seller parties were found to be Hawala Operators/ bogus bill providers - Held that:- Even it is presumed that the purchases are bogus and the assessee was not in a position to prove the existence of the suppliers admittedly, without purchases of the material, there cannot be any sale. Even otherwise, the Assessing Officer has not examined the aspect of sale. Even as per the provision of section 44AD of the Act, which is a special provision for computing profit & gains on business on presumptive basis, the profit is to be computed equal to 8% of the total turnover or gross receipt of the assessee. In the present appeal, the Ld. Commissioner of Income Tax (Appeal) has directed to adopt the profit at 15% of the alleged bogus purchases and no appeal has been filed by the assessee by accepting the order of the Ld. Commissioner of Income Tax (Appeal), therefore, in our view, the First Appellate Authority is quite justified to safeguard the interest of the Revenue, consequently, we find no infirmity in the conclusion of the Ld. Commissioner of Income Tax (Appeal), his stand is affirmed, resulting into dismissal of appeals of the Revenue.
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