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TMI Blog2020 (5) TMI 695X X X X Extracts X X X X X X X X Extracts X X X X ..... on assessee, which has remained un-discharged. In such a scenario, the addition, which could be made, was to account 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, consi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 18 - - - Dated:- 20-5-2020 - SHRI C. N. PRASAD, JM SHRI S. RIFAUR RAHMAN, AM Appellant by : Shri Pravin N. Shah, AR Respondentby : 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) - 22 in short referred as Ld. CIT(A) , Mumbai, dated 11 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at Ld. CIT(A) has sustained the addition made by the AO on estimating @ 16% of the alleged bogus purchases overlooking that assessee has already declared GP ratio. Accordingly, he submitted that 16% 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 ot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... details. However, at the same time, the stated purchases were under grave doubt since the assessee could not produce any of the party to confirm the transactions and the information received from investigation wing revealed that all the suppliers were engaged in carrying out only paper transactions without actual delivery of material. The complete onus to prove the purchases conclusively was on a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 from the purchases made from Om Corporation and others respectively. We notice from the financial statement that assessee has declared GP of 15.60% and we do not know how much GP, assessee has earned out of the disputed purc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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