TMI Blog2018 (9) TMI 779X X X X Extracts X X X X X X X X Extracts X X X X ..... te the income accordingly. The appeal of the assessee is partly allowed. - ITA No. 2220/Mum/2017 - - - Dated:- 4-9-2018 - Sri Mahavir Singh, JM And Sri Ramit Kochar, AM Appellant by : Shri H.S. Raheja, AR Respondent by : Shri S.K. Mitra, DR ORDER Per Mahavir Singh, JM This appeal filed by the assessee is arising out of the order of Commissioner of Income Tax (Appeals)-51, Mumbai [in short CIT(A)], in appeal No. CIT(A)-36/IT-428/ACIT-24(1)/14-15, dated 22.02.2017. The Assessment was framed by the Asst. Commissioner of Income Tax, Circle-24(2), Mumbai (in short ACIT/ AO ) for the A.Y. 2009-10 vide order dated 30.01.2015 under section 143(3) read with section 147 of the Income Tax Act, 1961 (hereinafter the Act ). ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9,22,432 5. Akashila Trade Ltd. 5,30,169 Total 22,80,601 4. The AO issued noticed under section 133(6) to the parties which returned back with the remark as left and assessee failed to produce these parties. During the course of assessment proceedings and during appellate proceedings, the assessee submitted all the documentary evidences such as inward register, stock register, payments received against such sales, receipt of material purchases, account payee cheque. According to the AO, the assessee failed to establish the genuineness of the purchase and accordingly, he made additi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies, the purchases as such did happen as mentioned by the AO himself. This has its implications in terms of price advantage secured by the appellant, since it would not have indulged in this modality for any other reason. The purchase prices debited and claimed cannot be accepted as being in tandem with the prevailing market rates, given the supplier discrepancy. The appellant has not furnished any evidence to show comparable supported by purchase of similar items from other parties to establish that the transactions were at arm's length. Accordingly, additional gross profit needs to be estimated on the purchases claimed to be made from-the suspected suppliers. . 6.9 Keeping in mind the totality ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Gross Profit 9963173 16655289 17798605 19515708 GP Ratio 17.73% 20.21% 17.84% 19.58% NP Ratio 5.25% 7.37% 6.41% 6.62% 6. We are in full agreement with the argument of the learned Counsel for the assessee and according to us an additional profit rate of 10% of unproved bogus purchases be further added to income of the assessee which will meet the end of justice in view of the decision of Hon ble Gujarat High Court in the case of CIT vs. Smith P. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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