9911796707
TMI Blog2018 (12) TMI 818X X X X Extracts X X X X X X X X Extracts X X X X ..... the income accordingly. The appeal of the assessee is partly allowed. - ITA No. 1935/Mum/2018 - - - Dated:- 5-11-2018 - Sri Mahavir Singh, Judicial Member For the Appellant : Shri SL Jain, AR For the Respondent : Shri SK Bepari, DR ORDER PER MAHAVIR SINGH, JM: This appeal by the assessee is arising out of the order of Commissioner of Income Tax (Appeals)-53, Mumbai [in short CIT(A)], in appeal No. CIT(A)-53/IT-283/ITO-19(3)(5)/2017-18 vide dated 01.01.2018. The Assessment was framed by the Income Tax Officer, ward-19(3)(5) Mumbai (in short ITO/ AO ) for the A.Y. 2011-12 vide dated 14.03.2016 under section 143(3) read with section 147 of the Income Tax Act, 1961 (hereinafter the Act ). 2. The first issue in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Jineshawhar Trading Company 7,27,865 Bhagyalaxmi Steel Industries 8,15,228 Total 55,75,279 4. The AO issued noticed under section 133(6) to the parties which returned back with the remark as left and assessee failed to produce these parties. During the course of assessment proceedings and during appellate proceedings, the assessee submitted documentary evidences such as payment received against such sales, receipt of material purchases, account payee cheque. According to the AO, the assessee failed to establish the genuineness of the purchase and accordingly, he made addition of unproved purchase at 25% of ₹ 1393820/- to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the CIT(A) has confirmed the profit rate at the rate of 12.5%, which according to me is on higher side going by the nature of business of the assessee i.e. Pipes and Pipe Fittings. I am in full agreement with the contentions raised by the assessee before CIT(A) and according to me a profit rate of 12.5% is on higher side as assessee has also paid the VAT element on these bogus purchases, a further deduction in estimation of profit to the extent of 4.5% can be allowed. Hence, I direct the AO to recompute the income after applying profit rate at the rate of 8% and compute the income accordingly. The appeal of the assessee is partly allowed. 6. The next issue is as regards to the disallowance of claim of deduction under section 80C of ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
