2018 (7) TMI 2108

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....appeal filed by assessee against the order of CIT(A)-51, Mumbai dated 13/02/2018 for A.Y.2009-10 in the matter of order passed u/s.143(3) r.w.s.147 of the IT Act. 2. The following grounds have been taken by the assessee:- Ground No.1 The learned CIT (Appeals) erred in confirming the addition made @ 15% amounting to Rs. 1,24,07,221/- by the learned AO on account of bogus Ground....

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....usiness of giving accommodation entries through concerns directly/indirectly controlled by him and the entitles of Sur Gems Group including our assessee were the beneficiaries. The subsequent search action on Sur Gems Group confirmed this fact that the assessee as wet! as other entities of Sur Gams Group have availed of accommodation entries from various concerns of Bhanwarlal Jain. The names of t....

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....further relief with respect to the GP margin shown by the assessee in respect of alleged bogus purchases after having the following observation:- "5.8 There is no dispute that fn respect of the said alleged bogus purchase there are corresponding sales also, This fact is also confirmed by the Tax Audit Report where the Auditors have furnished the quantitative tally of the purchases and sal....

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.... transactions wherein bogus purchases are involved, the GP margins are much higher as the rate of purchases made from the grey market is always much less as compared to purchases from registered suppliers due to the various savings on account of evasion of government dues/taxes. Therefore, as such no infirmity is found in the action of the AO of adopting GP margin of 15% while computing the profit....