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TMI Blog2018 (12) TMI 1643X X X X Extracts X X X X X X X X Extracts X X X X ..... ect the AO to recompute the income after applying profit rate at the rate of 12.5% and compute the income accordingly. - Appeal of the assessee is partly allowed. - ITA No. 2409/Mum/2018 (Assessment Year 2009-10) - - - Dated:- 19-12-2018 - Sri Mahavir Singh And Sri G Manjunatha, JJ. Appellant by : None Respondent by : Shri Choudhary Singh, DR Arunkumar ORDER Mahavir Singh, This appeal the assessee is arising out of the order of Commissioner of Income Tax (Appeals)-41 Mumbai [in short CIT(A)], in appeal No. CIT(A)-41/IT-344/2015-16 dated 19.02.2018. The Assessment was framed by the Income Tax Officer, ward-30(3)(3), Mumbai (in short ITO/ AO) for the A.Y. 2009-10 vide orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ₹ 16,54,146/- to the returned income of the assessee. Aggrieved, assessee preferred the appeal before CIT(A), who confirmed the addition made by the AO by observing in para 14 to 16 as under: - 14. I have carefully gone through the assessment order passed by the Assessing Officer (AO) and the written submissions of the appellant on the issue. I have also considered various case laws relied upon by the Assessing Officer. My observations are as under. 15. It is not correct to say that the AO h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e and gone through the facts and circumstances of the case. We find from the facts of the case and argument of both the sides that the CIT(A) has confirmed entire addition of bogus purchases made by AO, which according to me is on higher side going by the nature of business of the assessee i.e. trading of all types of castings. We are in full agreement with the contentions raised by the assessee before CIT(A) and according to us a profit rate of 12.5% is quite reasonable as assessee has also paid the VAT element on these bogus purchases. Hence, we direct the AO to recompute the income after applying profit rate at the rate of 12.5% and compute the income accordingly. 6. In the result, the appeal of the assessee is partly allowed. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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