2020 (12) TMI 767

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..... iance on Mercury International 2016 (8) TMI 1519 - ITAT MUMBAI] case wherein under identical facts and circumstances, this Tribunal had restricted the profit element embedded in the value of disputed purchases at 3%. We find that the ld. DR before us was not able to provide any other contrary decision before us. Hence, we do not find any infirmity in the order of the ld. CIT(A) and accordingly, the grounds raised by the revenue are dismissed.
Shri Justice P P Bhatt, President And Shri M. Balaganesh, AM For the Assessee : None For the Revenue : Shri V. Vinodkumar, Sr. AR ORDER PER M. BALAGANESH (A.M): These appeals in ITA Nos.4997/Mum/2017 & 4998/Mum/2017 for A.Y.2007-08 & 2008-09 arise out of the order by the ld. Commissioner of Inc .....

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..... Corporation of India in terms of tenders. The ld. CIT(A) had also observed that assessee has been making these sales to Shipping Corporation of India with low margins. The ld. AO observed that assessee had made purchases from the following parties whose names appeared in the website of Sales Tax department, Government of Maharashtra as tainted dealers:- Sr. No. Name of the party Amount 1 Gaurang Trading Company 45,42,706/- 2 Globex International 15,47,889/- 3 Harsh Enterprises 4,71,375/- 4 Meetali Industries 52,63,510/- 5 Outdoor Marketing Pvt. Ltd., 2,53,752/- 6 Pushp Hari Electricals & Engineering Pvt. Ltd., 5,28,754/- 7 Shyam Corporation 15,51,173/- 8 Carolin Enterprises 23,27,485/- Total 1,64,86,544/- 3.1. .....

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..... AO made the addition of ₹ 14,65,479/- on the net purchases (gross purchases less VAT) and completed the assessment. We find that the ld. CIT(A) on due appreciation of the fact that the entire sales were made only to Shipping Corporation of India Ltd., with low margins and also in view of the fact that the ld. AO had not disputed the corresponding sales made out of disputed purchases and by placing reliance on the decision of this Tribunal in the case of Mercury International in ITA No.7584 to 7588/Mum/2014 for A.Yrs. 2007-08, 2011-12 dated 24/08/2016 by noting that the facts of the assessee and facts before this Tribunal in Mercury International are virtually identical and accordingly, restricted the addition to 3% of the value of di .....

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