TMI Blog2021 (12) TMI 97X X X X Extracts X X X X X X X X Extracts X X X X ..... authenticity of purchase transactions. Therefore, the primary contention of the assessee to delete entire addition is rejected. Tribunal in the case of assessee engaged in trading of diamonds restricted the addition to 2% of unproved purchases. Considering the fact that the nature of assessee s business and the nature and manner of addition is similar to the one referred in the aforesaid case, the addition on account of unproved transactions in the instant appeal is restricted to 2%. - ITA No.7049 to 7051/MUM/2019 And ITA No.7743 to 7745/MUM/2019 - - - Dated:- 27-8-2021 - Shri Vikas Awasthy, Judicial Member For the Revenue : Sh. Sanjay J. Sethi For the Assessee : Ms. Dinkle Hariya, Advocate ORDER PER VIKAS AWASTH ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee. The ld. Counsel for the assessee pointed that the assessee furnished evidences in the form of purchase bills, bank statements, ledger accounts, stock register, etc. to substantiate genuineness of the transactions. The assessee discharged its onus in proving authenticity of the dealer and the purchases made from said dealer. The AO accepted the sales turnover declared by the assessee and still disbelieved purchases made from M/s Minal Gems holding it to be bogus transaction and made addition of ₹ 3,52,667/- by estimating suppressed profit margin at 25% . Aggrieved by the assessment order dated 07.03.2016 passed under section 143(3) read with section 147 of the Act, the assessee filed appeal before the CIT(A) inter alia chal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lal Jain group. During the course of search and seizure action on Bhanwarlal Jain group, the statement of Bhanwarlal Jain was recorded on oath under section 132(4) of the Act wherein he admitted that various concerns were floated by him for providing accommodation entries. The DR submitted that the assessee has failed to discharge his burden in proving authenticity of the dealers and purchases made from said dealer. The AO after having accepted sales turnover estimated suppressed profit margin @ 25%. The CIT(A) has erred in restricting the addition to 12.5%. The DR prayed for restoring the findings of AO. 5. Submissions made by rival sides heard, orders of authorities below examined. The Revenue in appeal has assailed the findings of CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the above that the Coordinate Bench while sustaining the order of the Ld.CIT(A) also considered the report of Task Group for Diamond Sector submitted to Department of Commerce, wherein it was submitted that net profit in diamond manufacturing is in the range of 1.5% to 4.5% and in trading it is in the range of 1% to 3%. The assessee before us submitted that he is into 100% exports of trading of cut and polish diamonds. The Task Group for Diamond Sector submitted to Department of Commerce also suggests that the profit margin in trading of goods is in the range of 1% to 3%. In the circumstance we direct the Assessing Officer to estimate the profit element from the purchases treated as non-genuine at the rate of 2% uniformly for all the Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting that the grounds raised in cross appeals, the facts leading to addition and the manner of addition in AY 2011-12 are identical to AY 2010-11, except for the amount involved and the dealer from whom alleged bogus bills were obtained. During the period relevant to AY 2011-12, the assessee made alleged bogus purchases of ₹ 9,15,519/- from M/s Daksh Diamonds, a concern belonging to Bhanwarlal Jain group. The detailed reasons given while adjudicating the appeal of assessee for AY 2010-11 would mutatis mutandis apply to the present appeal by the assessee. Hence, the appeal of assessee is partly allowed for the similar reasons and appeal of the Revenue is dismissed. ITA No. 7751/Mum/2019, AY- 2012-13 (Department s Appeal) IT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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