2018 (2) TMI 1749

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....ER Per Rajesh Kumar, AM This appeal has been filed by the assessee against the order of the CIT(A)-44, Mumbai dated 12.06.2015 for A.Y. 2011-12. 2. The issue raised in this appeal is against confirmation of Rs. 3,20,060/- being 8% of alleged bogus purchases as against 100% addition of bogus purchases made by the AO of Rs. 40,00,753/-. 3. The assessee is in the business of builder and d....

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....ing the purchases as bogus and non-genuine. In the appellate proceedings the learned CIT(A) partly allowed the appeal of the assessee by sustaining the addition equal to 8% of the total bogus purchase which works out to Rs. 3,20,060/- by relying on the decision of the Hon'ble Gujarat High Court in the case of CIT vs. Simit P. Sheth 38 taxmann.com 385 wherein the Hon'ble High Court has held....

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....rmally followed in such type of cases where bills are taken from hawala dealers , the assessee purchases goods from grey market thereby making some savings in the form of VAT and other levies. The Coordinate Benches of the Tribunal have taken a view that some percentage addition can be made in order to bring to tax the savings that the assessee might have made by purchasing the goods from grey mar....