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TMI Blog2019 (1) TMI 1455X X X X Extracts X X X X X X X X Extracts X X X X ..... f the order of Commissioner of Income Tax (Appeals)-30, Mumbai [in short CIT(A)], in appeal No. CIT(A)-30/19(2)(3)/1138/2015-16 dated 02.01.2018. The Assessment was framed by the Income Tax Officer, Circle 19(2)(3), Mumbai (in short 'ITO/ AO) for the A.Y. 2009-10 vide order dated 27.02.2015 under section 143(3) of the Income Tax Act, 1961 (hereinafter 'the Act'). 2. The only issue in this appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... umbai while restricting the GP @ 6.5% (4% on a/c of VAT levied + 2.5% on a/c of net profit margin) failed to understand that 4% VAT cannot be the Profit of the appellant. The VAT was levied by the seller & it was paid to him by a/c payee cheque along with the cost of the material & hence it required to be deleted." 3. Briefly stated facts are that the assessee engaged in the business of ferrous a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceedings 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 12.5% of Rs. 5,20,431/- to the returned income of the assessee. Aggrie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the percentage adopted by the AO is correct in the line of business i.e. dealer in ferrous and non-ferrous metals. As noticed above, in the similar circumstances of bogus purchases, Hon'ble Gujarat High Court estimated the additional advantage towards tax benefit (10% and the profit margin (2.5%) totaling to 12.5%. In the present case on perusal of copies of the invoices furnished by the app ..... X X X X Extracts X X X X X X X X Extracts X X X X
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