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TMI Blog2017 (10) TMI 523X X X X Extracts X X X X X X X X Extracts X X X X ..... situation following the honourable Gujarat High Court decision in the case of Simit P Seth (2013 (10) TMI 1028 - GUJARAT HIGH COURT) disallowance of 12.5% of the bogus purchase has been found to be meeting the end of justice in a number of cases at the Mumbai tribunal. Accordingly, we modify the order of learned CIT-A and hold that the disallowance in this case should be made at the rate of 12.5% of the bogus purchase - ITA No.5355/Mum/2016 And 5357/Mum/2016, ITA No.5689/Mum/2016 And 5692/Mum/2016 - - - Dated:- 18-8-2017 - SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND SHRI SANDEEP GOSAIN, JUDICIAL MEMBER For The Assessee : Ms. Pooja Swaroop For The Revenue : Shri. Ajay Singh ORDER PER BENCH: These are cross a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purchases of ₹ 71,58,777/-, is sustained, as requested by the Ld. AR and balance amount of ₹ 62,63,930/- (Rs 71,58,777/- Less ₹ 8,94,8477-), is hereby deleted. For A.Y.2011-12, the learned CIT-A has held as under: - By booking alleged bogus purchases, as compared to the A.Y. 2007-08, the appellant has suppressed its profit by ₹ 13,49,822/- (1,00,88,359 x 13.38%). In compliance, the Ld. AR could not offer any valid reasons for fall in the GP rate. Considering the facts in entirety / the appellant being wholesale trader and relying on decisions in the case of M/s. Kanchwala Gems Pvt. Ltd. V/s JCIT 288 ITR 10 (SC), etc, as quoted above, in my considered opinion, the estimation of GP @19.03% will be reasonable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wherein hundred percent of the bogus purchases was held to be added in the hands of the assessee and tribunals restriction of the addition to 25% of the bogus purchases was set aside. The special leave petition against this order alongwith others has been dismissed by the honourable apex court vide order dt 16.1.2017. 7. However, we note that dismissal of a special leave petition simply without any speaking order, does not merge the order of the honourable High Court with that of the honourable apex court. Furthermore when sales are not doubted hundred percent disallowance for bogus purchase is not possible. This has been so held by honourable jurisdictional High Court in the case of Nikunj Eximp enterprises. However we also note that fa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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