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TMI Blog2020 (2) TMI 1664X X X X Extracts X X X X X X X X Extracts X X X X ..... 7 & CIT(A)-30/19(2)/14906/2016-17 dated 10/10/2018 for A.Y.2012-13, 2013-14 & 2014-15, in the matter of order passed u/s.143(3) r.w.s. 147 of the Income Tax Act, 1961. 2. Common grievance of assessee in all the years are same with regard to the addition upheld on account of bogus purchases. ITA No.7199/Mum/2018 3. In the case of Kirtikumar D Doshi, ld. AR placed on record the order of the Tribunal in assessee's own case for the A.Y.2011-12 and 2013-14 wherein under similar facts and circumstances, matter was restored back to the file of the AO for following the jurisdictional High Court and restricted addition to the extent of difference between the GP declared in respect of bogus purchases vis-à-vis normal purchases. 4. We have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ugh diamonds. By the impugned order, the ld. CIT(A) confirmed the addition by estimating profit at 3% in polished and rough diamonds both, against which the assessee is in further appeal before the ITAT. 4. The ld AR of the assessee Shri Himanshu Gandhi has argued that the A.O. was not justified in making addition in respect of genuine purchases for which complete quantitative details were filed before the A.O. As per the ld. AR, the assessee has filed stock register reflecting goods received and processing and manufacturing thereof and corresponding sale with individual invoice before the A.O. Furthermore, one to one mapping of goods purchases, processed and subsequent sales with quantity was also filed before the A.O. which proves that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds received and processing and manufacturing thereof and corresponding sales with individual invoice with respect to alleged bogus purchases. The A.O. made addition by estimating GP on such alleged bogus purchases. By the impugned order, the ld. CIT(A) has given partial relief and the assessee is in further appeal before us. After going through the facts of the case, we observe that with respect to issue regarding addition in respect of bogus purchases, the Hon'ble Jurisdictional High Court in the case of Pr.CIT Vs M/s Mohommad Haji Adam & Co. (supra) have held as under: " 8. In the present case, as noted above, the assessee was a trader of fabrics. The A.O. found three entities who were indulging in bogus billing activities. A.O. fou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evenue. Therefore, even if 6% gross profit is taken into account, the corresponding cost price is required to be deducted and tax cannot be levied on the same price. We have to reduce the selling price accordingly as a result of which profit conies to 5.66%. Therefore, considering 5.66% of Rs.3,70,78,125/-which comes to Rs.20,98,621.88 we think it fit to direct the revenue to add Rs.20,98,621.88 as gross profit and make necessary deductions accordingly. Accordingly, the said question is answered partially in favour of the assessee and partially in favour of the revenue." 8. The Coordinate Bench of the ITAT, Mumbai in the case of Shri Rameshkumar Daulatraj Vs ITO in ITA No. 4192/Mum/2018 order dated 07/05/2019 after following the above dec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to give full details to the A.O. with regard to GP earned on normal purchases and also GP earned on alleged bogus purchases. We direct accordingly. 10. In the result, both the appeals of the assessee are allowed in part for statistical purposes only." 6. As the facts and circumstances during the year under consideration are perimatria, respectfully following the order of the Tribunal in assessee's own case, we restore the matter back to the file of the AO for deciding afresh in terms of the direction given by the Tribunal in its order dated 16/12/2019. 7. In the result, appeal is allowed for statistical purposes. ITA Nos.7183/Mum/2018 & 7184/Mum/2018 8. Both the assessee's are involved in trading and manufacturing of rough and polished ..... X X X X Extracts X X X X X X X X Extracts X X X X
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