2023 (7) TMI 285

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..... argued before the ITAT. What would be actual profit margin in the business that the assessee was carrying on and the matter of calculation before the concerned authority, whether the purchases were bogus and the parties from whom such purchases were allegedly made were bogus are essentially questions of fact for which evidence will have to be led. No substantial question of law arises. - INCOME TAX APPEAL NO. 441 OF 2018 - - - Dated:- 28-6-2023 - K.R. SHRIRAM, FIRDOSH P. POONIWALLA, JJ. For the Appellant : Ms. Sushma Nagaraj a/w Ms. Kinjal Patel and Ms. Vibhuti Keny. For the Respondent : None. P.C. 1. The appeal is against the order passed by the Income Tax Appellate Tribunal, Mumbai ( ITAT ) on 07/06/2017 fo .....

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..... under Section 133(6) of the Income Tax Act, 1961 to the parties but the same were returned unserved with the postal remarks addressee are not known and unclaimed . The AO therefore added the entire amount of purchases made from these parties to the total income of the assessee for the reason that the parties were not genuine and all purchases made by the assessee were in doubt. 4. We have considered the order of the AO. The AO does not dispute that purchases have been actually made but what is disputed is whether purchases have been made from the said 4 parties. The fact that payments were made to these parties by way of account payee cheques is also not questioned by AO. The AO has not given any finding as to whether he has even appr .....

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..... nd having considered paragraph 6 of the impugned order, we are satisfied that what has weighed in the mind of ITAT is that assessee had already declared 7.5% as gross profit. Of course, assessee had taken a stand that deference between 12% and 7.5% should be sustained and gross profit of 4.5% be applied. It is this proposal, we feel, made ITAT come to a mid figure of 8%. These are all calculations arrived at on the basis of the facts before ITAT and what is argued before the ITAT. 8. Moreover, what would be actual profit margin in the business that the assessee was carrying on and the matter of calculation before the concerned authority, whether the purchases were bogus and the parties from whom such purchases were allegedly made were bo .....

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