9911796707
TMI Blog2020 (11) TMI 604X X X X Extracts X X X X X X X X Extracts X X X X ..... ring the nature of business of the assessee and the margin on the trading, we find the addition sustained by Ld. CIT(A) is on the higher side and is unreasonable. In such type of cases the normal presumption is that assessee might have purchased the goods from the grey market thereby saving incidental expenses thereby earning a higher profit than the normal profits - it would be fair and reason ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d up for hearing none attended on behalf the assessee nor any application seeking adjournment was filed and therefore the case is being decided on merit ex-parte. We are inclined to adjudicate the issue on merit only and not on jurisdictional issue. 4. The facts in brief are that the assessee filed the return of income on 01.10.2009 declaring an income of ₹ 1,43,567/- which was processed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spond to the said show cause notice. Finally, assessment was framed under section 144 read with section 147 of the Act by adding entire bogus purchases to the income of the assessee. 5. In the appellate proceedings, the Ld. CIT(A) partly allowed the appeal of the assessee by sustaining the addition to the extent of 25% of the bogus purchases thereby confirming ₹ 12,80,322/- by following t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is on the higher side and is unreasonable. In our opinion, in such type of cases the normal presumption is that assessee might have purchased the goods from the grey market thereby saving incidental expenses thereby earning a higher profit than the normal profits. Therefore, in our opinion, it would be fair and reasonable if a rate of 8 % is applied on the said alleged bogus purchases. Accordingl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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