2019 (1) TMI 1455

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.... This appeal the assessee is arising out of the order of Commissioner of Income Tax (Appeals)-30, Mumbai [in short CIT(A)], in appeal No. CIT(A)-30/19(2)(3)/1138/2015-16 dated 02.01.2018. The Assessment was framed by the Income Tax Officer, Circle 19(2)(3), Mumbai (in short 'ITO/ AO) for the A.Y. 2009-10 vide order dated 27.02.2015 under section 143(3) of the Income Tax Act, 1961 (hereinafter 'the....

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.... explanation filed before them. 3. The learned CIT (A) Mumbai while restricting the GP @ 6.5% (4% on a/c of VAT levied + 2.5% on a/c of net profit margin) failed to understand that 4% VAT cannot be the Profit of the appellant. The VAT was levied by the seller & it was paid to him by a/c payee cheque along with the cost of the material & hence it required to be deleted." 3. Briefly stat....

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....returned unserved and assessee failed to produce these parties. During the course of assessment proceedings and during appellate proceedings, the assessee submitted documentary evidences such as payment received against such sales, receipt of material purchases, account payee cheque. According to the AO, the assessee failed to establish the genuineness of the purchase and accordingly, he made addi....

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....O. estimated the profit percentage on bogus purchases as 12.5%. The simple issue to be decided is whether the percentage adopted by the AO is correct in the line of business i.e. dealer in ferrous and non-ferrous metals. As noticed above, in the similar circumstances of bogus purchases, Hon'ble Gujarat High Court estimated the additional advantage towards tax benefit (10% and the prof....