9911796707
TMI Blog2017 (11) TMI 1905X X X X Extracts X X X X X X X X Extracts X X X X ..... As assessee has already declared GP of 3.9% on the sales so made during the year. Therefore, keeping in view the totality of facts and circumstances of the case vis- -vis nature of assessee s business, GP offered by the assessee and also the rate of VAT prevailing in Maharashtra, having been recovered from assessee, we direct the AO to restrict the addition to the extent of 2% of such purchases. - Decided partly in favour of assessee. - ITA No. 1177/Mum/2017 - - - Dated:- 15-11-2017 - SHRI R.C.SHARMA, AM AND SHRI SANDEEP GOSAIN, JM For the Assessee : Shri Hansraj S. Sanghvi For the Revenue : Ms. Arju Garodia ORDER PER R.C.SHARMA (A.M): This is an appeal filed by the assessee against the order of CIT(A)-37, Mum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 8. It is contended that all the documents in support of the alleged bogus purchases have been filed with the Assessing Officer and the CIT(A). A sample of the same has been filed in the paper book filed with the Honourable Tribunal. 9. It was further submitted that the Assessing Officer has not rejected the books of account and hence, addition on account of gross profit cannot be made. Reliance for the said proposition is placed on the decision of co-ordinate Bench of Mumbai Tribunal in the case of Sharad Constructions Pvt. Ltd. which is there in the decision paper book filed on the date of hearing - page no 57 of the paper book, internal page no 11 of the decision. It is imperative to mention that this decision of the co-ordinate B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of profit of 12.5% by the High Court was made on the plea that rate of VAT was 10% in Gujarat and additional 2.5% profit was estimated. However, in the State of Maharashtra, where assessee carries on its business, the VAT is 4%, therefore, in place of 10%, 4% should be taken into account. It was contended that tax amount on account of VAT was also recovered from the assessee thereby leaving no benefit of VAT. We also found that assessee has already declared GP of 3.9% on the sales so made during the year. Therefore, keeping in view the totality of facts and circumstances of the case vis- -vis nature of assessee s business, GP offered by the assessee and also the rate of VAT prevailing in Maharashtra, having been recovered from assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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