2023 (3) TMI 1500

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..... assessee. In such circumstances, it is only the element of suppressed profits that has to be brought to tax [Re. PCIT vs. Paramshakhti Distributors Pvt. Ltd. [ 2019 (7) TMI 838 - BOMBAY HIGH COURT] in trading of ferrous and non-ferrous metals, generally, the G.P ranges between 5% to 8%. Considering the entire facts of the case, we modify the order of CIT(A) and restrict the addition to 7.5% of the unproved purchases. Appeal of the assessee is partly allowed.
SHRI VIKAS AWASTHY, JUDICIAL MEMBER AND SHRI S.RIFAUR RAHMAN, ACCOUNTANT MEMBER For the Appellant : Shri Tejas Shah For the Respondent : Shri Manoj Kumar Sinha ORDER PER VIKAS AWASTHY, JM: These two appeals by the assessee are directed against the order of Commissioner of Income .....

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..... essing Officer to discharge his onus, the Assessing Officer estimated 25% as suppression of profits on alleged bogus purchases and made addition of Rs. 63,82,398/-. Aggrieved by the assessment order dated 16/03/2016 the assessee carried the issue in appeal before the CIT(A). The CIT(A) restricted the addition to 12.5% of the alleged bogus purchases. The ld. Authorized Representative for the assessee submits that the sales declared by the assessee have been accepted by the Department. The ld. Authorized Representative for the assessee prays that the CIT(A) has estimated G.P on very much higher side, a reasonable estimate may be made to disallow alleged bogus purchases. He proposed disallowance of 2-3%. 5. Per contra, Shri Manoj Kumar Sinha .....

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..... ng the entire facts of the case, we modify the order of CIT(A) and restrict the addition to 7.5% of the unproved purchases. We hold and order accordingly. 7. In the result, appeal by the assessee is partly allowed. ITA NO.113/MUM/2023-A.Y.2011-12: 8. The ld. Authorized Representative for the assessee submits that in assessment year 2011-12 the addition is on account of alleged bogus purchases. The Assessing Officer disallowed 12.5% of alleged bogus purchases aggregating to Rs. 5,13,47,017/-. The CIT(A) has upheld the same. The ld. Authorized Representative for the assessee submits that the submissions made while assailing additions in assessment year 2010-11 will equally apply for the assessment year under appeal. 9. The ld. Department .....

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