TMI Blog2017 (12) TMI 1796X X X X Extracts X X X X X X X X Extracts X X X X ..... order. We also find that the co-ordinate benches of the Tribunal have been taking a consistent view under same facts that some percentage addition ranging from 5% to 12.50% or a reasonable percentage of the bogus purchase should be made towards savings which the assessee may have made by purchasing the material from gray market thereby saving VAT and other incidental taxes. Therefore we are of the opinion that the ld.CIT(A) has taken a reasoned and cogent view in the assessee s case by applying 7.50% of the bogus purchases and therefore we find no reason to interfere in the same. Accordingly we affirm the order of CIT(A) by dismissing the appeal of the assessee. - I.T.A. No. 4505/Mum/2015 - - - Dated:- 7-12-2017 - SHRI D.T.GARASIA, JM A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The AO during the course of assessment proceedings, issued notices u/s 133(6) to the various parties from whom the assessee made purchases during the year. However, the notice issued to Apex Ferromate Pvt Ltd was returned unserved by the postal authority. Thereafter it was noticed that the said party is a hawala dealer which was identified by the DGIT(Inv), Mumbai and also from Sales Tax Department, Government of Maharashtra. Therefore, the AO issued notice to the assessee to prove the genuineness of the purchase failing which the same would be disallowed and added to the total income of the assessee. The assessee submitted before the AO that the payments of the purchases were made through banking channels, and also placed before the AO c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aised is partly allowed by estimating the embedded income at 12.5% of the total purchases of ₹ 96,08,509/- from the bogus supplier. However, as the appellant has already offered an average gross profit of 5% during the last few years, the net addition confirmed would be 7.50% (12.5%-5.00%0 Accordingly ground no.IV is partly allowed 4. After hearing the ld DR. and on perusal of the records as placed before us , we find that the assessee undoubtedly has availed hawala entries from the hawala operators. The explanation offered by the assessee did not find favour of the assessing officer and hence the AO added a sum of ₹ 51,49,820/- to the total income u/s 69C as peak credit on the basis of undisclosed cash which were treated as ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
