TMI Blog2017 (10) TMI 162X X X X Extracts X X X X X X X X Extracts X X X X ..... therein. The Assessing Officer had estimated the profit at 12.5% which was reduced to 6.5% by the learned CIT(A). In the facts and circumstances of the case, estimate of 6.5% of the value of alleged bogus purchases is reasonable and hence decision rendered by Ld CIT(A) does not call for any interference. Accordingly, uphold the order of the learned CIT(A). - Decided against assessee. - I.T.A. No. 584/Mum/2017 - - - Dated:- 22-8-2017 - Shri B.R. Baskaran (AM) For The Assessee : Shri B. N. Rao For The Department : Ms. N. Hemalatha ORDER The appeal filed by the assessee is directed against the order dated 21.11.2006 passed by the learned CIT(A)-30, Mumbai and it relates to A.Y. 2009-10. The assessee is aggrieved by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore the learned CIT(A), the assessee submitted that estimation of profit at 12.5% is on the higher side. It was submitted that the Assessing Officer has determined the rate of 12.5% on the basis of decision rendered by Hon'ble High Court of Gujarat in the case of CIT Vs. Simit Sheth (38 Taxmann. Com 385). It was submitted that VAT rate applicable in the case of Simit Sheth was 12.5% and Hon'ble High Court sustained addition to the extent of 12.5% of the purchases. The assessee submitted before the learned CIT(A) that VAT rate applicable to the assessee is only 4%. The learned CIT(A) was convinced with the explanations of the assessee. He took the view that apart from the VAT rate, an addition should be made towards margin available ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the transportation of material from the place of the impugned suppliers to the place of assessee. I noticed that the assessee has also failed to furnish confirmation letters obtained from the suppliers in order to prove the genuineness of the purchases. Since the assessee has reconciled the purchases with sales, tax authorities have presumed that the assessee would have sourced material from some other source and have accordingly estimated the profit element embedded therein. The Assessing Officer had estimated the profit at 12.5% which was reduced to 6.5% by the learned CIT(A). In the facts and circumstances of the case, I am of the view that estimate of 6.5% of the value of alleged bogus purchases is reasonable and hence decision rendere ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
