2017 (9) TMI 1903

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....essee is directed against the order dated 0901-2017 passed by Ld CIT(A)-17, Mumbai and it relates to the assessment year 2011-12. The assessee is aggrieved by the decision of Ld CIT(A) in confirming the addition relating to alleged bogus purchases. 2. I heard the parties and perused the record. The assessee is a dealer and manufacturer of electronic goods like CPU digital analog. Consequent to ....

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.... took the view that the assessee has purchased goods from grey market and availed accommodation bills to account for the same. Accordingly the AO took the view that the profit element involved in the impugned purchases should be assessed, which he estimated at 12.50% of the value of purchases on the basis of decision of Hon'ble Gujarat High Court rendered in the case of Smit P Shah (356 ITR 451). ....

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....of purchases and hence the Ld CIT(A) was justified in adopting the G.P rate for making addition. 5. I have heard rival submissions and perused the record. Since the assessee has proved the sale of goods, the AO chose to add the profit element involved in the purchases. The AO was constrained to come to that conclusion, since the impugned suppliers have admitted before the Sales tax authorities ....

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....eduction of almost 6%. I notice that the turnover of the assessee has increased from Rs. 246 lakhs in the immediately preceding year to Rs. 426 lakhs. The increase in turnover may be one of the reasons for the fall in G.P, but another possibility is that the assessee might have inflated impugned purchases also. Hence I am of the view that there is no merit in the claim of the assessee. The tax aut....