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TMI Blog2025 (4) TMI 1171X X X X Extracts X X X X X X X X Extracts X X X X ..... of Income-tax, Circle 19(3), Mumbai (in short the "AO")passed under section143(3) read with section 147 of the Act, date of order13/12/2019. 2. The assessee has taken the following grounds of appeal:- "1 (a) The learned CIT(A) NFAC has erred in law and on facts in confirming the addition of Rs. 1,80,93,680/-being purchases from M/s. Mohit Enterprises Rs. 68,68,157/- and purchases from M/s. Mayur Exports Rs. 1,12,05,525/-treating them as non-genuine without properly considering the facts that the goods purchased have been exported out of India and the sales cannot be effected without making purchases. 2 (b) The learned CIT(A) NFAC has erred in law and on facts in confirming the disallowance of Rs. 1,12,05,525/-being purchase from Mis. M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /2018, upheld the view taken by the Ld. CIT(A). The ITAT observed that the assessee failed to substantiate the genuineness of the alleged bogus purchases, and therefore, the adoption of gross profit at 8% was held to be justified. Consequently, the assessee's appeal was dismissed. Subsequently, the case was reopened by issuing a notice under Section 148, and the Ld. AO passed a reassessment order under Sections 147/143(3) of the Act. In the reassessment order, the Ld. AO made an addition for two alleged bogus purchases linked to the Banwarilal Jain Group, namely: Mohit Enterprises - Rs. 68,68,157/- Mayur Exports - Rs. 1,12,05,525/- The Ld. AR contended that in the original assessment under Section 143(3), the Ld. AO had applied an 8% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chases. We find no reason to deviate from the ruling of the Coordinate Bench, and accordingly, we restrict the addition to 8% GP on the alleged bogus purchases. It is noted that in the original assessment order under Section 143(3), an addition of Rs. 8,96,442/- (8% GP) was made on the alleged bogus purchase of Rs. 1,12,05,525/-, which was already confirmed. Therefore, the entire addition of Rs. 1,12,05,525/- made in the reassessment order under Sections 143(3)/147 is unsustainable and is accordingly deleted. However, concerning the alleged bogus purchases amounting to Rs. 68,68,157/-, we direct that the addition be restricted to 8% of the GP, which works out to Rs. 5,49,452/-. Accordingly, the addition is confirmed to the extent of Rs. 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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