TMI Blog2017 (6) TMI 485X X X X Extracts X X X X X X X X Extracts X X X X ..... 7% should be sustained which worked out by subtracting 7.25% of the GP declared by the assessee from 12% of GP applied by the CIT(A). We find that it would be reasonable if GP instead of 4.75% as prayed by the assessee, the GP of 8% is applied in place of 12%. We, therefore, direct the AO to apply to GP 8% on the bogus purchases. The cross-objection filed by the assessee is partly allowed. - ITA No.01/Mum/2015, Cross-Objection No.17/Mum/2017 - - - Dated:- 7-6-2017 - Shri Mahavir Singh, JM And Shri Rajesh Kumar, AM Assessee by : Ms.Snehal R Shah Revenue by : Shri M C Omi Ningshan ORDER Per Rajesh Kumar, A. M. These cross-appeals by the respective parties are directed against the order dated 17.10.2014 passed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee has made certain purchases were engaged in providing accommodation entries in respects of bogus purchases and accordingly issued notice u/s 133(6) to the parties but the same were returned unserved with the postal remarks addressee are not known and unclaimed. Therefore, the AO added the same to the total income of the assessee for the reasons that the parties were not genuine and all purchase made by the assessee were in doubt. 5. In the appellate proceedings, the ld.CIT(A) partly allowed the appeal of the assessee by sustaining the 12% of such purchases as GP by observing and holding as under : 3. Decision: I have gone through the facts of the case, finding of the AO and submissions of the appellant in this rega ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ercentage, while there can be no uniform yardstick adopted, while looking at the norms in the market and considering the trade of the appellant, 12% GP ,on the impugned component of purchases is directed to be added to the profit of the appellant for the year. Therefore, ₹ 8,57,760/- is to be added back to the profit of the appellant for the year. The appellant would get a relief of ₹ 62,90,240/- 6. We have considered the rival contentions and perused the material placed on record including the orders of the authorities below. We find that the assessee has raised the issue in the cross-objection that the addition sustained towards GP on bogus purchases at the rate of 12% over and above, the GP of 7.5% already declared by t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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