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TMI Blog2020 (9) TMI 663X X X X Extracts X X X X X X X X Extracts X X X X ..... Shri Kiran Unavekar, DR ORDER PER S. RIFAUR RAHMAN, ACCOUNTANT MEMBER: The present Appeal has been filed by the assessee against the order of Ld. Commissioner of Income Tax (Appeals) - 53 in short referred as Ld. CIT(A) , Mumbai, dated 20.12.18 for Assessment Year (in short AY) 2010-11. 2. The brief facts of the case are that assessee filed its return of income on 14.10.2010 declaring total income of ₹ 2,65,911/-. The return was processed u/s 143(1) of the Act. Subsequently, information was received from the sales tax Department that assessee has indulged in bogus purchases. The Assessment was accordingly reopened. The assessing officer in this case has made addition @ 12.5% on account of bogus purchase amounting t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. Ld. AR submitted that Ld. CIT(A) has sustained the addition made by the AO on estimating @ 12.5% of the alleged bogus purchases overlooking that assessee has already declared GP ratio. Accordingly, he submitted that 12.5% estimated by Ld. CIT(A) is too high and he relied upon the various judgments passed by the Coordinate Bench of ITAT, wherein the bench has estimated @ 3% of the alleged bogus purchases. 6. On the other hand, Ld. DR relied upon the orders passed by revenue authorities and submitted that estimation made by Ld. CIT(A) should be sustained. 7. Considering the rival contentions and material placed on record, we notice that ITAT Mumbai Bench in the case of Heeramaneck Son Vrs. ACIT passed in ITA No. 1862/Mum/2017, w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... % of alleged bogus purchases of ₹ 1,87,08,961/-. The same comes to ₹ 5,61,269/-. The order of Ld. AO stands modified to that extent. The Ld. AO is directed to re-compute the income of the assessee in terms of our above order. 8. Therefore, respectfully following the aforesaid decision, we notice that assessee has already declared GP ratio of 9.68% and 14.63% from the purchases made from Pravesh Enterprises and Rajat Trading Company respectively and on an average, assessee has already declared 9.5% of GP. Therefore, we are inclined to direct the AO to estimate the income @ 3% of the alleged purchases. Accordingly, we direct the AO to estimate the income of the assessee @ 3% of the alleged purchases. 9. In the net result, t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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