TMI Blog2020 (9) TMI 1122X X X X Extracts X X X X X X X X Extracts X X X X ..... any VAT portion incurred by the assessee on the purchases. Gross profit disclosed by the assessee on the disputed purchases was 2.42%. These facts were not controverted by the revenue before us. Profit element determined @8% is on the much higher side and we deem it fit to estimate the profit @3% on the value of purchases treated as non-genuine by placing reliance on Ralf Jems Pvt. Ltd [ 2019 ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stated to be not pressed by the ld. AR at the time of hearing. The same is reckoned as statement made from the Bar and accordingly, ground Nos. 1 2 are dismissed as not pressed. 3. The only surviving issue to be decided in this appeal is as to whether the ld. CIT(A) was justified in confirming the addition made on account of @8% on the value of alleged bogus purchases in the facts and circumsta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the business of providing accommodation bills only and there was no physical delivery of goods made by them. Accordingly, the ld. AO concluded that even though the assessee had made payments to these parties by account payee cheques, since transportation bills were not produced by the assessee for delivery of goods, the purchases made from these parties are to be treated as bogus. The ld. AO, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... we hold that profit element determined @8% is on the much higher side and we deem it fit to estimate the profit @3% on the value of purchases treated as non-genuine by placing reliance on the Co-ordinate Bench decision in the case of Ralf Jems Pvt. Ltd., vs. ITO in ITA No.1575 to 1578/Mum/2018 dated 30/09/2019. Accordingly, the ground No.3 raised by the assessee is partly allowed. 4. In the res ..... X X X X Extracts X X X X X X X X Extracts X X X X
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