9911796707
TMI Blog2021 (10) TMI 1437X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome Tax (Appeals)-29, Mumbai (in short 'CIT(A)') in Appeal No. CIT(A)-29/IT-421/ITO-19(1)(4)/17-18 dated 13.08.2018. The assessment was framed by Income Tax Officer - 19(1)(4), Mumbai for Assessment Year 2009-10 vide his order dated 19.03.2015 under Section 143(3) r.w.s. 147 of the Income Tax Act, 1961 (hereinafter referred to as 'the Act'). 2. The only issue in this appeal of the assessee is a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he beneficiaries of accommodation entries received from the parties who have issued false bills without delivery of goods. The assessee has received the accommodation bills from the following parties :- 1 M/s Shankeshwar Sales Corporation Rs. 31,58,504/- 2 M/s. Prakash Trading Corporation Rs. 60,88,591/- Total Rs. 92,47,095/- The assessee before the Assessing Officer filed complet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... However, the assessee failed to do so. 4.3.1 Coming to the addition made, the Hon'ble ITAT, Ahmedabad 'C' Bench in the case of Vijay Proteins Ltd. vs ACIT 58 ITD 0428 held that in similar circumstances, 25% of the purchase price accounted through fictitious invoices has to be disallowed. The Hon'ble High Court of Gujarat in the case of Sanjay Oil Cakes v/s CIT 316 ITR 0274 dealt with sim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure of business and no uniform yardstick could be adopted. Given the facts and circumstances of the instant case, I find it reasonable to estimate the gross profit on the alleged bogus purchases at 12.5%. The addition made by the AO @ 12.5% on the alleged bogus purchases is upheld. This ground of appeal is therefore dismissed." Aggrieved, assessee came in appeal before the Tribunal. 4. I noted f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , but could not produce the parties for examination nor the delivery challans or transportation receipts of the goods. Admittedly, the assessee is engaged in the business of reselling of ferrous and non-ferrous metals and for this business, the profit rate applied by the Assessing Officer, i.e. 12.5%, is not reasonable. Going by the nature of the business of the assessee, I estimate profit rate of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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