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TMI Blog2023 (10) TMI 1442X X X X Extracts X X X X X X X X Extracts X X X X ..... f Rs. 75,69,320/- made from dealers alleged to be suspicious parties on only basis of information received from DGIT (Inv.), Mumbai that too without bringing any adverse material on record and also without properly appreciating the various supporting documentary evidences, details and also cogent explanations in support of impugned purchases furnished on record being wrong on facts and bad in law therefore may kindly be deleted. 2. That the impugned disallowance made is also wrong on facts and in law for the reasons that the Id. below authorities have not disputed the complete quantitative and qualitative tally of trading stock of the entire year including the alleged ingenuine trading purchases and corresponding sales made out of that an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purchases and added to the total income of the assessee. 3. The assessee filed the appeal before the ld. CIT(A). The ld. CIT(A) has dismissed the appeal of the assessee. 4. During the course of appellate proceedings before us at the outset the ld. Counsel submitted that similar issue on indentical facts in the case of the assessee for the assessment year 2010-11 has been adjudicated by the ITAT, Mumbai in case of Maftlal Harkchandji Bothra Vs. ITO-19(2)(3) dated 14.06.2023 ITA No. 1002/Mum/2023 wherein the ITAT has restricted such addition to the 5% of such purchases. On the other hand, the ld. D.R supported the order of lower authorities. 5. Heard both the sides and perused the material on record. The assessing officer has received in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ses is on the higher side. The Ld.AR relied on the decision of the coordinate bench of Hon'ble Tribunal on the identical issue in the case of Babulal Punkhraj Sanghvi Vs. ITO, in ITA No. 2556 & 2557/Mum/2022 dated 19.12.2022 at Para 4 to 7 of the order read as under: 04. The only identical issue involved in both these appeals is challenging the profit estimation made on account of ingenuine purchases 05. We have heard the rival contentions and perused the materials available on record. The assessee is an individual and proprietor of Nandishwar Steel, engaged in the trading in ferrous and non-ferrous metals. It is not in dispute that assessee during the year had made certain purchases from certain parties, who were treated as tainted par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubted by the Revenue, the only logical conclusion could be that assessee had made purchases in the grey market in order to have savings in indirect taxes and instantly, profit element thereon. Hence, it would be just and fair to bring to tax only the profit element embedded in the value of such disputed purchases. We find that this Tribunal has been consistently passing orders by estimating the profit percentage for assessee's engaged in iron and steel industry at 5% When this was put to learned Authorized Representative, he also fairly agree for estimation of profit at 5%. Accordingly, we estimate the profit element at the rate of 5% of disputed purchases, which in our considered opinion, would meet the ends of justice. Accordingly, th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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