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TMI Blog2017 (6) TMI 1325X X X X Extracts X X X X X X X X Extracts X X X X ..... rchases but assessee has already disclosed a profit rate of 5.05% and qua that reduction should have been allowed to the assessee. Application of profit rate at 12.5% is perfectly but assessee has already disclosed profit rate of 5.05%, which should have been reduced. Accordingly, profit rate to the bogus purchases should be estimated at the rate of 7.45% and disallowance should be made. Direct th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... circumstances of the case and law, the Ld. CIT(A) erred in confirming the addition of ₹ 19,41,109/- i.e. 7.50% (12.50%-5%) of alleged bogus purchases of ₹ 2,58,81,450/-." 3. I have heard the rival contentions and gone through the facts and circumstances of the case, I find that the assessee is engaged in the business of trading in ferrous and non-ferrous metal under the name & style ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the hawala parties is amounting to ₹ 2,58,81,450/- and accordingly, AO added a sum of ₹ 32,35,181/- by estimating profit rate of 12.5%. Aggrieved, assessee preferred the appeal before CIT(A), who also confirmed the action of the AO by following the decision of Hon'ble Gujarat High Court in the case of CIT vs. Smith P Seth 365 ITR 451(Guj). Aggrieved, assessee is in second appeal befor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under: - A.Y. Turn Over G.P. N.P. G.P. Ratio N.P. Ratio 2008-09 37994324 1754997 401266 4.62 1.06 2009-10 58703486 2694193 696795 4.59 1.19 2010-11 67318635 3365932 784464 5.00 1.17 2011-12 72334264 3654111 1007258 5.05 1.39 5. The learned Counsel for the assessee requested for reduction in profit rate qua the bogus purchases. Admittedly, these are bogus purchases bu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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