TMI Blog2021 (4) TMI 662X X X X Extracts X X X X X X X X Extracts X X X X ..... inclined to interfere with the order of the CIT(A) and uphold the same and dismiss the grounds of appeal of the revenue. - ITA Nos. 4165/Mum/2019 - - - Dated:- 2-2-2021 - Shri Rajesh Kumar, Accountant Member And Shri Pavan Kumar Gadale, Judicial Member For the Appellant : Shri Sajit V. Nair, Sr. DR For the Respondent : Shri Mukund Bakshi, AR ORDER PER PAVAN KUMAR GADALE: The revenue has filed the appeal against the order of the Commissioner of Income Tax (Appeals) - 16, Mumbai, passed u/s. 147 r.w.s 143(3) and 250 of the Income Tax Act, 1961. The revenue has raised the following grounds of appeal: 1. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in restricting the addit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Therefore, the A.O. has reason to believe that there is an income escapement assessment due to bogus bills transactions. In response to notice issued, the assessee has filed a letter on 02.06.2014 to treat the return of income filed on 30.09.2009 as a compliance to the notice u/s 148 of the Act. Subsequently the notice u/s 143(2) and 142(1) of the Act along with questionnaire were issued calling for various details. In compliance the Ld. AR of the assessee appeared from time to time and the case was discussed. The A.O found that, the assessee has obtained bogus purchase bills amounting to ₹ 5,21,52,147/- from nine parties and issued show cause notices on the parties. Whereas, the information submitted by the parties were not compl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Contra, the Ld. AR supported the order of the Ld.CIT(A) and relied on the assessee s own case for the earlier assessment year and filed the copy of the ITAT order and prayed for dismissal of the Revenue Appeal. 6. We heard the rival submissions and perused the material on record. The only disputed issue alleged by the revenue that the Ld.CIT(A) has restricted the addition of disallowance of bogus purchases to the extent of 10%. We find as envisaged by the Ld. AR, the Coordinate Bench of the Hon ble Tribunal in assessee s own case for the A.Y 2008-09 in ITA No. 3088/Mum/2015 dated 17.02.2017 at page 5 para 5 of the order has observed as under: 5. We have heard rival contentions and gone through the facts and circumstances of the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t assessee might have purchased extra profit on account of saving of sales tax and other tax. Even by purchasing from grey market, assessee might have save some profits and profit of the assessee has 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. 7. We find the facts and the issues in the present case are similar to the earlier years and follow the judicial precedence and observe that the Ld.CIT(A) has granted the relief by restricting the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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