9911796707
TMI Blog2021 (2) TMI 351X X X X Extracts X X X X X X X X Extracts X X X X ..... 2% (approx). In the trading activities, it is expected to earn around 3-5%. Taking the higher margin that assessee might have earned in the alleged transaction and as per the decision of HEERAMANECK SON GF case [ 2018 (12) TMI 1830 - ITAT MUMBAI] and SIMIT P SHETH [ 2013 (10) TMI 1028 - GUJARAT HIGH COURT] we are inclined to direct the AO to estimate the income @ 3% (5% - 2%) of the alleged purchases. Accordingly, the grounds raised by the assessee are partly allowed. - I.T.A. Nos. 4546 and 4545/Mum/2019 - - - Dated:- 25-1-2021 - Vikas Awasthy , Member ( J ) And S. Rifaur Rahman , Member ( A ) For the Appellant : None For the Respondents : Sanjay Sethi, DR ORDER Per S. Rifaur Rahman , Accountant Member The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0V Prakash Steel Allies AAAPC4405F 2010-11 20,53,399/- 27860664216V Shankeshwar Sales Corporation AACPD5521F 2010-11 25,94,554/- Total 46,47,953/- Accordingly, the Assessment was reopened u/s. 147 of the Act and the assessment was completed u/s. 143(3) r.w.s. 147 of the Act determining the total income at ₹ 9,34,700/- after making addition of ₹ 5,80,994/- being 12.5% on account of total non-genuine purchases of ₹ 46,47953/-. 5. Aggrieved by the above ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... count for profit element embedded in these purchase transactions to factorize for profit element earned by assessee against possible purchase of material in the grey market and undue benefit of VAT against alleged bogus purchases, which lower authorities have rightly done. However, considering GP rate of 10.59% already reflected by the assessee as well as VAT rate applicable to the goods being dealt with by the assessee, we find the estimation to be on the higher side and therefore, we restrict the same to 3% 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. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
