TMI Blog2017 (7) TMI 1400X X X X Extracts X X X X X X X X Extracts X X X X ..... he books of account should be reduced from the said percentage and only the differential should be applied - the rate as applied by the AO i.e 12.50% minus already declared in the profit and loss account i.e 9.38 % which comes to 3.12% should be applied. Accordingly, we set aside the order of ld.CIT(A) and direct the assessing officer to apply GP rate 3.12% on the bogus purchases to cover the v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re-opening of the assessment u/s 148 of the Act and at the time of hearing, the ld. AR did not press these grounds, therefore, dismissed as not pressed. 3. The issue raised in grounds of appeal no. (c) is against the confirmation of addition by the ld.CIT(A) as made by the AO on the basis of surmises and presumption. 4. The facts of the case are that the assessee filed return of income on 29 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he total income of the assessee by framing assessment u/s 147 r.w.s.143(3) of the Act by assessing the total income at ₹ 7,15,274/- vide assessment order dated 19.3.2015. 5. The first appellate authority also confirmed the action of AO by confirming the addition at the GP rate of 12.5%. Aggrieved by the order of the ld.CIT(A) the assessee is in second appeal before us. 6. We have caref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessment order himself and therefore, the application of GP rate at 12.5% on bogus purchases over and above the profit declared by the assessee in the return of income is not fair. We are ,therefore, of the view that the application of GP 12.5% on the bogus purchases is reasonable but the GP declared by the assessee in the books of account should be reduced from the said percentage and only ..... X X X X Extracts X X X X X X X X Extracts X X X X
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