TMI Blog2017 (9) TMI 1903X X X X Extracts X X X X X X X X Extracts X X X X ..... vant for AY 2009-10 and 2010-11 respepctively. During the year under consideration, the G.P rate has come down to 9.82%, a reduction of almost 6%. The turnover of the assessee has increased from ₹ 246 lakhs in the immediately preceding year to ₹ 426 lakhs. The increase in turnover may be one of the reasons for the fall in G.P, but another possibility is that the assessee might have inflated impugned purchases also. Hence there is no merit in the claim of the assessee. The tax authorities have estimated the profit that would have been made by the assessee on the value of alleged bogus purchases @ 12.50% and same is reasonable - Decided against assessee. - I.T.A. No. 1423/Mum/2017 (Assessment Year 2011-12) - - - Dated:- 14-9-201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... took the view that the profit element involved in the impugned purchases should be assessed, which he estimated at 12.50% of the value of purchases on the basis of decision of Hon ble Gujarat High Court rendered in the case of Smit P Shah (356 ITR 451). The AO assessed the same and the Ld CIT(A) also confirmed the same. Aggrieved, the assessee has filed this appeal. 4. The Ld A.R submitted that the assessee has furnished all the details in order to prove the genuineness of purchases by furnishing copies of purchase bills, payment details etc. The assessee has also proved that the said goods have been sold. He further submitted that the applicable VAT rate on most of the goods was only 5%. He submitted that the suppliers have been declar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , a reduction of almost 6%. I notice that the turnover of the assessee has increased from ₹ 246 lakhs in the immediately preceding year to ₹ 426 lakhs. The increase in turnover may be one of the reasons for the fall in G.P, but another possibility is that the assessee might have inflated impugned purchases also. Hence I am of the view that there is no merit in the claim of the assessee. The tax authorities have estimated the profit that would have been made by the assessee on the value of alleged bogus purchases @ 12.50% and in my view, the same is reasonable in the facts and circumstances of the case discussed above. Accordingly I do not find any infirmity in the order passed by Ld CIT(A) and hence uphold the same. 7. In the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
