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TMI Blog2020 (1) TMI 10X X X X Extracts X X X X X X X X Extracts X X X X ..... ESH KUMAR, AM This appeals filed by the assessee are directed against the orders of the CIT(A)-10, Mumbai dated 27.03.2018 and it relates to assessment years 2008-09, 2012-13 and 2013-14. 2. The common issue raised by the assessee in all these appeals is against the confirmation of addition to the tune of 8% of the alleged bogus purchases by the learned CIT(A) as against the addition made by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve the genuineness there of. The assessee, during the course assessment proceedings filed various details such as copy of payment details, quantity of diamonds, rate of carat, valuation reports with evidences of delivery notes of goods, original bills raised by the parties, quantitative tally of purchases and sales and details of persons with whom transactions were entered into. However, the AO br ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee is in the trade of manufacturing and dealing in cut and polished diamonds the margin of profit in assessee's trade is very meagre and even the Government of India has recognised the fact by bringing out circular to this effect that the profits range between 2 to 6 percent. The learned A.R. submitted that the addition as made by the AO and confirmed by the learned CIT(A) is bad in law and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Gems Pvt. Ltd., ITA No. 3118/Mum/2017 (Mum) vi. Indo Unique Trading Pvt. Ltd. vs. DCIT, ITA No. 6341/Mum/2016 (Mum) vii. Maruti Impex vs. JCIT, ITA No. 3823/Mum/2014 (Mum) viii. ACIT vs. Tristar Jewellery, ITA No. 7593/Mum/2011 (Mum) 6. The learned D.R., on the other hand, heavily relied on the order of the CIT(A) by submitting that very reasonable addition has been made to tax profit on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... htly applied the rate on bogus purchases. However, the quantum of rate applied is excessive and unreasonable in view of the trade of the assessee. Under the present facts and circumstances and considering the rate of profit prevalent in assessee's trade we are of the view that it would be reasonable if a rate of 3% is applied to the alleged bogus purchases. Accordingly we set aside the order of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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