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TMI Blog2018 (9) TMI 1981X X X X Extracts X X X X X X X X Extracts X X X X ..... , direct the Assessing Officer to restrict the addition to 5.5% of the nongenuine purchases of ₹ 1,24,73,405 and delete the balance addition. This ground is partly allowed. - ITA 960/MUM/2018 - - - Dated:- 11-9-2018 - Shri Saktijit Dey, Judicial Member Assessee by : Shri Vimal Punamiya Revenue by : Shri S.K. Bepari JUDGMENT Aforesaid appeal has been filed by the assessee challenging the order dated 10th October 2017, passed by the learned Commissioner (Appeals)30, Mumbai, for assessment year 200910. 2. Grounds no.1 to 4, are not pressed, hence, dismissed. 3. In ground no.5, the assessee has challenged the addition of ₹ 15,59,175, made on account of bogus purchases. 4. Brief facts are, the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the tax liability and since the assessee has recorded such profits in the books of account, he proceeded to estimate the profit element embedded in such purchases Nageshwar Steel House @ 12.5% which resulted in an addition of ₹ 15,59,175. Though, the assessee challenged the aforesaid addition before the first appellate authority, however, the learned Commissioner (Appeals) refused to deviate from the decision of the Assessing Officer. 5. The learned Authorised Representative submitted that the assessee has shown a gross profit rate of 3% and it has also paid VAT on the alleged bogus purchases @ 4%. Thus, he submitted, considering the profit ratio in this particular line of business, the maximum addition which can be made is @5.5% o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e aforesaid submissions of the assessee. Considering the fact that the assessee has shown gross profit rate of 3% and has also paid VAT on such purchases @ 4%, I direct the Assessing Officer to restrict the addition to 5.5% of the nongenuine purchases of ₹ 1,24,73,405 and delete the balance addition. This ground is partly allowed. 8. Ground no.6 is against levy of interest under section 234B and 234C of the Act. 9. Levy of interest under the aforesaid provisions being consequential is not required to be adjudicated. Suffice to say, computation of interest under section 234C of the Act is to be made on the basis of returned income. This ground is disposed off accordingly. Nageshwar Steel House 10. Ground no.7, is against initi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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