TMI Blog2017 (2) TMI 1481X X X X Extracts X X X X X X X X Extracts X X X X ..... depicted in the above chart which is minimum at the rate of 3.90% and maximum of 9.85%. We are of the view that a reasonable estimate on profit rate at 10% will suffice the issue. Accordingly, we direct the AO to estimate the profit rate @ 10% on the above purchases and appeal of the assessee is partly allowed and that of the Revenue is dismissed. - ITA No.3088/Mum/2015, ITA No.3967/Mum/2015 - - - Dated:- 17-2-2017 - SRI MAHAVIR SINGH, JM AND SRI RAJESH KUMAR, AM For the Assessee : Shri. Vijay Mehta, AR For the Revenue : Shri. Sumon Kumar, DR ORDER PER MAHAVIR SINGH, JM: These cross appeals by the assessee and Revenue are arising out of the order of CIT (A)-16, Mumbai in appeal No. CIT (A)-16/DCIT (OSD)-8(1)/I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Director General of Income Tax (Investigation), Mumbai held assessee's transaction with these parties as bogus, (b) the copies of statements recorded in the case of M/s. Thin Corporation, M/s. Pooja Trading Corporation, M/s. Yash Impex, M/s. Dharmesh Trading and M/s. Harsh Enterprises., (c) the opportunity of cross examination of MIs. Jain Corporation, MIs. Pooja Trading Corporation, M/s. Yash Impex, MIs. Dharmesh Trading and M/s. Harsha Enterprises and (d) the opportunity to rebut the inference drawn against the assessee. Revenue has raised following three grounds :- 1. Whether on the facts and in the circumstances of the case, the Ld. CIT(A) erred in deleting the addition made on account of bogus purchases b holding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... department, whereby it was detected that the assessee company is indulging in bogus purchases and has made aggregate purchase of ₹ 14,22,74,602/- from 18 parties as listed in the statement given by the assessee during the financial year 2006-07,2007-08-2008-09, 2009-10 and 2010-11. The AO issue reopening notice under section 148 read with section 147 of the Act on 28-03-2013 by recording reasons. During scrutiny proceedings, the assessee was asked to prove the purchase of ₹ 60,64,104/- purported to have made from the following parties during the financial year 2007-08 relevant to assessment year 2008-09: - Sr. No. Name of the party Amount (Rs.) 1. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... profit rate at the rate of 12.5% on the bogus purchases for the reason that Revenue had accepted the manufacturing of moulds and sale of moulds thereof and it was also not contested by the Revenue that the consumables like Taps, Drills, Cutter, HSS Tools, Carbide Rods, HSS Blades Reamers etc. was not used. The CIT(A), estimated by recording his finding as under: - In the assessee's case, the manufacturing of moulds and the sale of moulds is not under dispute and the revenue on account thereof i.e. sale of moulds was accepted by the assessing officer. It is undisputed fact that various items of consumables like Taps, Drills, Cutter, HSS Tools, Carbide Rods, HSS Blades Reamers etc. were required for manufacture of moulds and without t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .5% on bogus purchase, assessee as well as Revenue, both came in second appeal before Tribunal. 5. We have heard rival contentions and gone through the facts and circumstances of the case. Before us, the leaned Counsel for the assessee filed a comparative statement of cross profit and net profit ratio for many years which is as under: - Comparative statement of gross profit and net profit ratios Income Turnover 2008 2007 2006 2005 2004 Rs. Rs. Rs. Rs. Rs. Sales 81,470,952 103,613,890 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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