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2023 (2) TMI 532 - BOMBAY HIGH COURTReopening of assesssment u/s 147 - addition of 100% of alleged bogus purchases u/s 68 - difference between the gross profit rate on genuine purchases and gross profit rate on hawala purchases - CIT(A) restricted the addition to 25% of the amount of purchases made - HELD THAT:- In the present case, the order of the Tribunal is certainly not the one where the AO had been directed to carry out a fresh examination on any issue rather the Tribunal had clinched the issue by holding that the addition could only be made to the extent of difference between the gross profit rate on genuine purchases and gross profit rate on hawala purchases. Tribunal remitted the matter to the file of AO for applying the ratio laid down by this Court in the case of Mohommad Haji Adam & Co. [2019 (2) TMI 1632 - BOMBAY HIGH COURT] The reason why the Tribunal did not specify the amount based upon the afore-stated principle was that specific details were not readily available from various ARs/DRs for facilitating the calculation of such rates. In our opinion, the Action of the respondent No.4 in issuing Form No.3 based upon FAQ No.7 issued by the CBDT is unsustainable and accordingly set aside. The said respondent shall proceeded to issue Form No.3, keeping in view the provisions of section 2(1)(j)(B) of the Act of 2020 and determine the disputed tax by giving effect to the orders of the Tribunal. Needful be done within a period of three months.
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