2017 (11) TMI 1905

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... This is an appeal filed by the assessee against the order of CIT(A)-37, Mumbai dated 28/11/2016 in the matter of order passed u/s.143(3) r.w.s. 147 of the IT Act. 2. Grievance of assessee revolves around reopening of assessment u/s.147 as well as merit of the addition made on account of bogus purchases. 3. Rival contentions have been heard and record perused. 4. Facts in brief are that t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....re from the purchases recorded in the books of account and that without purchases there cannot be sales and similarly, sales is not possible without purchases. 7. Further, there is no adverse finding of the tax auditor as regards the quantitative details of purchases, sales and closing stock is concerned. The stock register is also duly maintained by the assessee. 8. It is contended that all....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....es tax Department and the Honourable Tribunal in that case has deleted the entire addition made by the Assessing Officer. 10. Without prejudice to our contention that there cannot be any addition, we submit that the Assessing Officer should estimate the gross profit rate on the basis of records of the assessee or any other assessee in the same line of business. The Assessing Officer does not gi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....as confirmed the action of the AO estimating profit at 12.5% by relying on the decision of Gujarat High Court in the case of Simit P Seth 256 ITR 451. It was argued by learned AR that in the case of Simit P Seth estimation of profit of 12.5% by the High Court was made on the plea that rate of VAT was 10% in Gujarat and additional 2.5% profit was estimated. However, in the State of Maharashtra, whe....