2016 (9) TMI 1589

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.... ORDER PER RAJPAL YADAV, JUDICIAL MEMBER Assessee is in appeal against the order of the ld.CIT(A)-V, Baroda dated 30.12.2013 for the Astt.Year 2009-10. 2. With the assistance of the ld.representatives, we have gone through the record carefully. The admitted facts are that the assessee was engaged in trading of steel. According to the AO, purchases having value of Rs. 18,02,736/- could n....

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....ended that Hon'ble Gujarat High Court has upheld the addition in a similar type of case at the rate of 12.5% of the purchases. He prayed that at the most, addition could be confirmed at 12.5% of the purchases. On the other hand, the ld.DR contended that assessee might have been involved in this modus operandi from long back. In this year, he has been caught, and therefore, his total purchases shou....

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....Sheth (supra), the CIT(A) has estimated the profit in this modus operandi at 30%, which has been scaled down by the Tribunal to 12.5%. This order of the Tribunal has been upheld by the Hon'ble Gujarat High Court. In our opinion, in different trade items, there may be different rate of profit. Whenever any profit is being estimated, the element of guesswork would always be involved. In the case of ....