TMI Blog2021 (4) TMI 328X X X X Extracts X X X X X X X X Extracts X X X X ..... ade out of alleged purchases had not been doubted by the Revenue, then only profit element could be brought to tax thereon. This profit element has been reasonably estimated by the ld. CIT(A) @12.5% by placing reliance on the decision of CIT vs. Simit P Sheth [ 2013 (10) TMI 1028 - GUJARAT HIGH COURT] on which we do not find any infirmity and hence, we are not inclined to interfere in the same. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eal is whether the ld. CIT(A) was justified in restricting the disallowance made on account of bogus purchases to 12.5% of value thereof in the facts and circumstances of the case. 3. We have heard rival submissions and perused the materials available on record. We find that assessee is a public limited company engaged in the business of manufacturing and trading of granites, marbles, slate des ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of Maharashtra and also in view of the fact that notice sent by him u/s.133(6) of the Act of M/s. Henil Sales Agency could not be served at the given address and assessee also failed to produce the party before him. Based on this, he doubted the purchases made from the said party and held it to be bogus and proceeded to make addition in the assessment. The ld. CIT(A) observed that assessee could ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... find that since the sales made out of alleged purchases had not been doubted by the Revenue, then only profit element could be brought to tax thereon. This profit element has been reasonably estimated by the ld. CIT(A) @12.5% by placing reliance on the decision of the Hon ble Gujarat High Court in the case of CIT vs. Simit P Sheth reported in 356 ITR 451 on which we do not find any infirmity and h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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