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TMI Blog2022 (8) TMI 947X X X X Extracts X X X X X X X X Extracts X X X X ..... had not proved the veracity of the purchases beyond reasonable doubt in the instant case, we hold that estimation of profit percentage @3% of value of disputed purchases would meet the ends of justice. Accordingly, the grounds raised by the assessee are partly allowed. - ITA No. 924/Mum/2022 & 925/Mum/2022 - - - Dated:- 28-7-2022 - SHRI M. BALAGANESH , ACCOUNTANT MEMBER And SHRI RAHUL CHAUDHARY , JUDICIAL MEMBER Assessee by : Shri Sanjay Pawaskar Revenue by : Shri Vivek Anand Ojha ORDER PER M. BALAGANESH ( A. M ) : These appeals in ITA No.924/Mum/2022 925/Mum/2022 for A.Y.2012-13 2014-15 arise out of the order by the ld. Commissioner of Income Tax (Appeals)-49, Mumbai in appeal No.CIT(A)-30, Mumbai/10486/2017-1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... belong to Bhanwarlal Jain Group. Since assessee has made purchases from the aforesaid two concerns who have been characterised as tainted parties by the Income Tax department, the ld. AO sought to examine the veracity of the purchases made from the aforesaid parties. The assessee submitted the purchase bills of the suppliers wherein the delivery and receipt of goods were acknowledged on the bills itself, invoices of corresponding export sales of polished diamonds, copies of purchase register, sales register, stock register, copies of bank statements of the assessee reflecting the diamonds made to aforesaid suppliers by account payee cheque, copy of bank statements of the suppliers reflecting the payments received by them from the assessee, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hether the profit percentage of 12.5% would be justified in respect of assessee engaged in the business of trading of diamonds is an issue to be decided by us herein. In this regard, we find that The report of the task group for diamond sector submitted to Department of Commerce suggested that the net profit that could be derived in the diamond manufacturing ranges from 1.5% to 4.5% and in trading activity thereof, the profitability range is 1% to 3%. This Tribunal in number of times had placed reliance on the said task force report and had estimated the profit percentage within the aforesaid range. Considering the totality of facts and circumstances and considering the documents submitted by the assessee and also considering the fact that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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