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TMI Blog2018 (12) TMI 1995X X X X Extracts X X X X X X X X Extracts X X X X ..... made from the parties who have been identified as hawala operators by the Sales Tax Department, Government of Maharashtra. AO has not disbelieved the fact that purchases were made by the assessee from some other sources and corresponding sales have also been effected. For that reason only he has estimated the profit @10%, which has been sustained by the Commissioner (Appeals). Therefore, we are o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng in chemicals. For the assessment year under dispute, assessee had originally filed his return of income on 30.09.2009 declaring total income of ₹ 4, 38,100. Subsequently, on the basis of information received from the DGIT (Inv.), Mumbai, and Sales Tax Department, Govt. of Maharashtra, the Assessing Officer reopened the assessment under section 147 of the Income Tax Act, 1961 (in short, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5,407. The aforesaid amount was added back to the income of the assessee. Being aggrieved with the addition so made assessee preferred appeal before the learned Commissioner (Appeals). However, learned Commissioner (Appeals) sustained the addition. 4. Learned Authorised Representative submitted, the adoption of profit rate at 10% is high and excessive considering the profit rate generally achieved ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from some other sources and corresponding sales have also been effected. For that reason only he has estimated the profit @10%, which has been sustained by the Commissioner (Appeals). Therefore, considering the overall facts and circumstances of the present case, we are of the view that estimation of profit @5% on the alleged bogus purchases would be reasonable. Accordingly, we direct the Assessi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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