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TMI Blog2018 (12) TMI 815X X X X Extracts X X X X X X X X Extracts X X X X ..... nse and the spot verification revealed that none of the supplier existed at the given address. All these factors cast serious doubts on assessee’s claim. Both the lower authorities, in our opinion, clinched the issue in the proper perspective and proceeded to make estimation against the same. Considering the nature of assessee’s business, the estimation, in our opinion, was on the higher side. Upon perusal of appellate orders for AYs 2009-10 & 2010-11 in assessee’s own case, we find that the Ld. first appellate authority has adopted a uniform rate of 7% while estimating such additions for all the group concerns. Keeping in view the same, we reduce the estimated additions to 7% of alleged bogus purchases. - I.T.A. No.734/Mum/2016 - - - D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gnized contractor with Municipal Corporation of Greater Mumbai and Metropolitan Region Development Authority and various other state and central government agencies. The assessee was a part of M/s RPS Infra-projects group. The aforesaid group was subjected to a survey action u/s 133A on 26/11/2012 wherein it was gathered that the group obtained accommodation purchase bills from various entities listed as hawala dealers by the Sales Tax Department, Mumbai thereby inflating its expenses and suppressing the profits . The statement u/s Section 131 of the key persons namely Jyantilal Laherchand Shah Nitin R.Shah was recorded during the survey proceedings, the relevant extracts of which have already been reproduced in the quantum a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e same with partial success before Ld. CIT(A) vide impugned order dated 30/11/2015 wherein the overall estimated addition, in the light of certain judicial pronouncements, has been reduced to 14.84%, being Gross profit Rate reflected by the assessee. Aggrieved the assessee is in further appeal before us. 4. The Ld. Authorized Representative for Assessee, Shri A.N.Shah, submitted that the impugned additions were still on the higher side keeping in view the assessee s nature of business. Our attention has been drawn to the fact that an estimated rate of 7% has been applied by Ld. first appellate authority in assessee s own case for AYs 2009-10 2010-11. The copies of the relevant orders have been placed on record. Per Contra , Ld. DR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... we reduce the estimated additions to 7% of alleged bogus purchases. The impugned order stand modified to that extent. Resultantly, the assessee s appeal stand partly allowed. ITA No. 735/Mum/2016 ; Saket Infraprojects Limited 6. The assessee, being part of the same group, under similar circumstances, has been saddled with an addition of 22% against alleged bogus purchases for ₹ 3,86,21,849/-. The quantum of addition, upon further appeal, has been reduced to 14.91% by Ld. first appellate authority. Facts and circumstances being the same, we reduce the estimated additions to 7% and accordingly, modify the order of Ld. first appellate authority to that extent. The appeal stand partly allowed. Conclusion 7. Both t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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