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TMI Blog2021 (10) TMI 959X X X X Extracts X X X X X X X X Extracts X X X X ..... onclusion to estimate the income @ 12.5% is proper and just. Therefore, we are inclined not to interfere with the findings of the Ld. CIT(A) and accordingly, grounds raised by the Department are hereby dismissed. - ITA No. 7041/MUM/2019 - - - Dated:- 14-10-2021 - S. Rifaur Rahman, Member (A) And Ravish Sood, Member (J) Revenue by : Ms. Shreekala Pardeshi, DR Assessee by : None ORDER PER S. RIFAUR RAHMAN, A.M. The present appeal is filed by the assessee against the order of the Commissioner of Income Tax (Appeals)-42, Mumbai [in short 'CIT(A)'] for the assessment year 2009-10 dated 29.08.2019 and arises out of assessment completed u/s 143(3) r.w.s. 147 of the Income Tax Act, 1961 (in short the Act). 2. At ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Nisha Enterprises 8,22,219/- Total 49,75,563/- 4. After considering the submissions of the assessee and the Assessing Officer considered the above purchases as bogus purchases and made 100% of the above purchases as income of the assessee by disallowing the entire purchases. 5. Aggrieved, the assessee preferred an appeal before the Ld. CIT(A) and Ld. CIT(A) after considering the detailed submissions of the assessee, adjudicated the issue partly in favour of the assessee by restricting the disallowance to the extent of 12.5% of the bogus purchases with the following observation: 6.3.16 Apparently, the motive behind obtaining ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n in ITA No. 6555/Mum/2017 for AY 2009-10 in the case of M/s Muhta Markfin (P) Limited Vs. ITO-5(2)(3), has held as under: We are of the considered view that as the profit element accounted for by the assessee in its regular books of accounts pertains to the profit which it would have made from selling the goods under consideration, therefore, the same would have no bearing on the qualification of the monetary benefit involved in making of purchases by the assessee at a lower price from the open/grey market, as in comparison to purchases made from registered dealer 6.3.18 However, as observed earlier that no payments were made to M/s Raj Traders and M/s Nisha Enterprises during the year under consideration and the payments have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... record. We noticed that the Ld. CIT(A) restricted the estimation of profit embedded in accommodation entries of bogus purchases transactions @ 12.5% of the purchase price accounted in the bogus invoices and the same view was upheld as the fair profit rate out of the bogus purchases by various Courts and Tribunals. It is well settled proposition that the estimation of profit is very much restricted to the benefit taken by the assessee by availing accommodation entries. In our considered view, the Ld. CIT(A) has adjudicated the issue and reached the conclusion to estimate the income @ 12.5% is proper and just. Therefore, we are inclined not to interfere with the findings of the Ld. CIT(A) and accordingly, grounds raised by the Department are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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