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TMI Blog2016 (9) TMI 1562X X X X Extracts X X X X X X X X Extracts X X X X ..... o contradict the findings recorded by the Ld.CIT(A). The assessee s counsel has also placed reliance upon case of CIT vs Nikunj Eximp Enterprises Pvt Ltd [ 2013 (1) TMI 88 - BOMBAY HIGH COURT ] wherein similar issue has been decided on identical lines by the Hon ble Bombay High Court. In our view, no intervention is required in the findings of Ld.CIT(A) and, therefore, the same is confirmed. The grounds raised by the revenue are dismissed. - SHRI C.N. PRASAD (JUDICIAL MEMBER) AND SHRI ASHWANI TANEJA (ACCOUNTANT MEMBER) For the Appellant : Shri Vijaykumar Soni For the Respondent : Shri M Subramanian ORDER Per ASHWANI TANEJA, AM This appeal has been filed by the revenue against the order of Commissioner of Income-tax (Appeals)[hereinafter c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id and bad in law, as the same has been passed by the A.O. without application of mind, on the basis of information received from investigation wing which in turn relied on the surveys conducted by the sales tax department. 3. During the course of hearing, the Ld. Ld. Departmental Representative supported the order of the Assessing Officer whereas the Ld.counsel for the assessee supported the order of Ld.CIT(A) and also relied upon the judgement of Hon ble Bombay High Court in the case of CIT(A) vs Nikunj Eximp Enterprises Pvt Ltd 372 ITR 6129 (Bom). 4. We have gone through the orders passed by lower authorities and judgement placed before us. With respect to ground relating to additional evidences considered by the Ld.CIT(A), we pointed ou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m these parties aggregating to R ₹ 1,14,92,970 by solely relying upon the alleged information received from the investigation carried out by the sales-tax department, Mumbai. While doing so, the Assessing Officer did not point out any deficiencies, shortcomings or contradictions in the documentary evidences submitted by the assessee. Being aggrieved, assessee filed appeal before the Ld.CIT(A) and submitted that complete documentary evidences have been submitted before the Assessing Officer and without controverting these evidences, the Assessing Officer made total disallowance of purchases. It was alternatively submitted that in any case, the Assessing Officer has accepted the income received by the assessee on account of job work cha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies which were not recorded in the books. The appellant took only bills from these 6 parties as accommodation to explain the purchases. Therefore the entire purchase from these 8 parties cannot. be added as bogus and what needs to be taxed is the profit element embedded in such transaction. The appellant carrvout only the job work of dying the cloths one contract basis. Estimation ranging from to 25% has been upheid by the Hon'ble Gujarat High Court depending upon the nature of the business. As held in the case of Simit P. Sheth (supra) no, uniform yardsticks could be applied to estimate the rate of profit and it vary with the nature of business. Taking all the facts into consideration and the findings of the Hon ble Courts on this issu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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