9911796707
TMI Blog2020 (8) TMI 310X X X X Extracts X X X X X X X X Extracts X X X X ..... tent with view taken by the Co-ordinate Bench in number of cases, we are of the considered opinion that rate profit adopted @ 12.50% on alleged bogus purchases is on higher side going by the nature of business of the assessee and hence, we order the Assessing Officer to restrict the addition at the rate of 5% on alleged bogus purchases. Appeal of the assessee is partly allowed. - ITA No. 1890/Mum/2019 - - - Dated:- 16-6-2020 - Sri Mahavir Singh, VP And Sri Manjunatha G, AM For the Appellant : None For the Respondent : Shri Akhtar Ansari, DR ORDER PER MANJUNATHA G, AM: This appeal filed by the assessee is directed against the order of the Ld. Commissioner of Income Tax(Appeals)-05 [in short CIT(A)] Mumbai, dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment order, the assessee preferred an appeal before the Ld. CIT(A). Before, ld. CIT(A), the assessee has reiterated its submissions made before the AO. The sum and substance of arguments of the assessee before the Ld. CIT(A) are that purchase from the above party is genuine, which is supported by necessary evidences. Therefore, no additions could be made on the basis of information received from third party. The Ld.CIT(A), after considering relevant submission of the assessee and also, by following the decision of Hon ble Gujarat High Court, in the case of CIT vs. Simith P. Sheth (356 ITR 451), has sustained the addition made by the AO towards alleged bogus purchases to 12.50% gross profit on total purchases from those parties. 5. Non ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as filed certain basic evidences, but failed to file further evidences to conclusively prove purchases to the satisfactions of the Ld.AO. At the same time, the Ld. AO had also failed to take the investigation to a logical conclusion by carrying out necessary enquires, but he solely relied upon information received from investigation wing, which was further supported by information received from Maharashtra Sales Tax Department. Under these circumstances, it is difficult to accept arguments of both the sides. Further, in a case where purchases are considered to be purchased from suspicious/hawala dealers, various High Courts and Tribunals had considered an identical issue in light of investigation carried out by the Sales Tax Department and ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
