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TMI Blog2018 (2) TMI 1785X X X X Extracts X X X X X X X X Extracts X X X X ..... ion is undisputed. In the present case the sales were not disputed and the method of accounting followed by the assessee is project completion, therefore, we are inclined to estimate the profit on the above purchases at 3%. Accordingly appeal of the assessee is partly allowed. - ITA Nos.4335 to 4338/Mum/2017 - - - Dated:- 12-2-2018 - Shri D.T. Garasia and Shri Rajesh Kumar, JJ. Appellant by: Shri Mani Jain Respondent by: Shri R.P. Meena ORDER Rajesh Kumar, These appeals have been filed by the assessee against the orders of the CIT(A)-11, Pune dated 27.03.2017 for assessee years 2008-09 to 2011- 12. Since the assessee has raised common issue in all these appeals, therefore the same are heard together and are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ordingly the assessee was issued show cause notice on 19th March, 2013 as to why the same should not be disallowed which was replied by the assessee vide letter dated 20.03.2012. The assessee submitted that it has made purchases from three parties aggregating to `31,03,479/- and submitted the details of purchases, bills, vouchers, vehicle numbers and delivery challans, etc beside the details of payments. The assessee submitted that these purchases were made for the construction of various projects and the materials were duly consumed and the sales were also reflected in the books of account of the assessee. It was also stated that mere non payment of VAT/Sales Tax by the vendor do not mean that the assessee has not incurred any cost on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the AO the proofs of purchases of material such as delivery challans, etc. and the corresponding sales were also shown in the books of account of the assessee. The learned A.R. submitted that the assessee is following project completion method wherein profits are offered to tax only after completion of the project whereas the AO had added 100% of the bogus purchase to the income of the assessee disregarding the said system of accounting followed by the assessee. The learned A.R. further submitted that despite producing all the evidences, the AO has not done any verification and merely added the entire purchase from three parties aggregating to `31,03,479/- to the income of the assessee. The learned A.R. also submitted that the case of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h is low and thus justified sustaining of disallowance at 15%. However, in similar type of cases the Coordinate Benches have taken a view that the percentage addition should be made ranging from 2 to 12.5% depending upon the facts and circumstances of the case in order to bring to tax the savings which the assessee has made by the reason of purchase of goods from grey market when the sales/consumption is undisputed. In the present case the sales were not disputed and the method of accounting followed by the assessee is project completion, therefore, we are inclined to estimate the profit on the above purchases at 3%. Accordingly appeal of the assessee is partly allowed without deciding the issue technically and legally. 8. In the result, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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