TMI Blog2017 (6) TMI 1325X X X X Extracts X X X X X X X X Extracts X X X X ..... have been allowed to the assessee. Application of profit rate at 12.5% is perfectly but assessee has already disclosed profit rate of 5.05%, which should have been reduced. Accordingly, profit rate to the bogus purchases should be estimated at the rate of 7.45% and disallowance should be made. Direct the AO accordingly. The appeal of assessee is partly allowed. - ITA No.1639/Mum/2017 - - - Date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se and law, the Ld. CIT(A) erred in confirming the addition of ₹ 19,41,109/- i.e. 7.50% (12.50%-5%) of alleged bogus purchases of ₹ 2,58,81,450/-. 3. I have heard the rival contentions and gone through the facts and circumstances of the case, I find that the assessee is engaged in the business of trading in ferrous and non-ferrous metal under the name style of proprietorship conc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amounting to ₹ 2,58,81,450/- and accordingly, AO added a sum of ₹ 32,35,181/- by estimating profit rate of 12.5%. Aggrieved, assessee preferred the appeal before CIT(A), who also confirmed the action of the AO by following the decision of Hon ble Gujarat High Court in the case of CIT vs. Smith P Seth 365 ITR 451(Guj). Aggrieved, assessee is in second appeal before Tribunal. 4. I fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A.Y. Turn Over G.P. N.P. G.P. Ratio N.P. Ratio 2008-09 37994324 1754997 401266 4.62 1.06 2009-10 58703486 2694193 696795 4.59 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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