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TMI Blog2021 (8) TMI 275X X X X Extracts X X X X X X X X Extracts X X X X ..... es. The ground No. 3 of appeal is without any merit hence, dismissed. Estimation of income - Bogus purchases - HELD THAT:- The assessee has declared over all G.P. of 6.24%. The Assessing Officer has estimated G.P. on bogus purchases at 12.5%. The CIT(A) has upheld the same. In our considered opinion estimation of G.P. at 12.5% is on higher side. To meet the ends of justice suppressed profit margin on bogus purchases is restricted to 7%. - ITA No. 6232/MUM/2019 - - - Dated:- 16-7-2021 - Vikas Awasthy, Member (J) For the Respondents : Smita Verma ORDER This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals)-29, Mumbai [in short 'the CIT(A) ] dated 24/07/2019 for the assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs the assessee failed to produce any document viz. delivery challans, transport receipts, good inward register, stock register, etc. Thus, the assessee failed to discharge his onus in proving genuineness of the dealers and the purchases made from them. The Assessing Officer after rejecting the books of assessee estimated profit margin on bogus purchases at 12.5% and made addition of ₹ 4,82,729/-. Aggrieved by the assessment order dated 21/03/2015 passed under section 143(3) r.w.s. 147 of the Act, the assessee filed appeal before the CIT(A) challenging validity of reopening, rejection of books of account and the addition made in respect of bogus purchases. The CIT(A) after examining the facts of case and submissions of assessee uph ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion here that the Assessing Officer while estimating G.P. on unproved purchases has neither disturbed the G.P. declared by the assessee on regular purchases nor sales turnover declared by the assessee. Therefore, no prejudice is caused to the assessee in so far regular/undisputed purchases. The ground No. 3 of appeal is without any merit hence, dismissed. 6. In ground No. 4 of appeal, the assessee has assailed addition made on estimations in respect of bogus purchases. The assessee has declared over all G.P. of 6.24%. The Assessing Officer has estimated G.P. on bogus purchases at 12.5%. The CIT(A) has upheld the same. In my considered opinion estimation of G.P. at 12.5% is on higher side. To meet the ends of justice suppressed profit ma ..... X X X X Extracts X X X X X X X X Extracts X X X X
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