TMI Blog2020 (1) TMI 10X X X X Extracts X X X X X X X X Extracts X X X X ..... s. However, the quantum of rate applied is excessive and unreasonable in view of the trade of the assessee. Rate of profit prevalent in assessee s trade we are of the view that it would be reasonable if a rate of 3% is applied to the alleged bogus purchases. Accordingly we set aside the order of the CIT(A) and direct the AO to apply a rate of 3% on bogus purchases - Appeal filed by the assessee is partly allowed. - ITA Nos. 2678 to 2680/Mum/2018 - - - Dated:- 19-11-2019 - Shri Rajesh Kumar, Accountant Member And Shri Amarjit Singh, Judicial Member For the Appellant : Ms. Heena Gandhi For the Respondent : Shri Drop Singh Meena ORDER PER RAJESH KUMAR, AM ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls raised by the parties, quantitative tally of purchases and sales and details of persons with whom transactions were entered into. However, the AO brushing aside the contentions of the assessee concluded that all these purchases from these parties were bogus and applied a rate of 12.5% to bring the profit element on the said bogus purchases to tax resulting into addition of ₹ 58,20,839/- in A.Y. 2008-09, ₹ 97,18,979/- in A.Y. 2012- 13 and ₹ 59,53,464/- in A.Y. 2013-14 in the assessment framed under Section 143(3) r.w.s. 147 of the Act. 4. In the appellate proceedings the learned CIT(A) restricted the addition at 8% of the bogus purchase after taking into consideration the submissions of the assessee. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v. DCIT vs. Ronak Gems Pvt. Ltd., ITA No. 3118/Mum/2017 (Mum) vi. Indo Unique Trading Pvt. Ltd. vs. DCIT, ITA No. 6341/Mum/2016 (Mum) vii. Maruti Impex vs. JCIT, ITA No. 3823/Mum/2014 (Mum) viii. ACIT vs. Tristar Jewellery, ITA No. 7593/Mum/2011 (Mum) 6. The learned D.R., on the other hand, heavily relied on the order of the CIT(A) by submitting that very reasonable addition has been made to tax profit on the bogus purchases and therefore the order of the CIT(A) be confirmed. 7. After hearing the rival contentions and perusing the record we observe that the assessee is engaged in the business of manufacturing and export of cut and polished diamonds. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
