TaxTMI 
TaxTMI 
2019 (1) TMI 1922
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....issues are common and connected and the appeals were heard together, these have been consolidated and disposed of by this common order. 4. Brief facts of the case are as under: The assessee is a Partnership Firm, engaged in the business of 'trading in diamonds'. The return of income for the year under appeal was filed on 15-09-2012, declaring total income of Rs. 71,60,981/-. The return was processed u/s 143(1) of the Act. The case was selected for scrutiny by CASS and notice u/s 143(2) dated 06-08-2013 was issued and served on the assessee. Notice u/s 142(1) of the Act was issued on 28-11- 2014. The assessment u/s 143(3) of the Act was finalized on 27~03-2':-15, assessing the total income at Rs. 1.90,56,840/-. 5. During the c....
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.... 14,86,98,269/-. 6. In response to the notices issued, the assessee vide letter dated 17-03-2015, contended that the purchases made from these parties were genuine and all these purchases were entered in their books of accounts and payments have been made through cheques. AO considered the submissions and stating that though the assessee could able to produce the stock register entry, cheque payments, no other document such as delivery challan were produced which leads to prove that the purchases shown to have been made from these parties are bogus and the only inevitable conclusion drawn is that the assessee might have made these purchases from grey markets. By saying so, after taking into account the comparative position of trading resul....
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.... trade, the task force group for diamond industy constituted by the Government of India, Ministry of Commerce and Industry, after considering the BAP scheme, recommended presumptive tax for net profit calculated @2% of trading activity and @3% for manufacturing activity or @ 2.5% across the board. It is also ascertained that the operating profit in case of diamond trading for computation of ALP by the TP wing is consistently in the region of around 1.75% to 3%. 6.16 During the present proceedings, AR brought to nr> notice by furnishing copies of the relevant r ;sessment orders, that the AO has adopted in appellant's own case profit element embedded @ 3% in the subsequent assessments finalised for A.Y.2011-12, 2014-15 on the similar set....
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....pted 3% as the profit margin on the total purchases in the subsequent scrutiny assessment passed for the A.Y. 2011-12 and 2014-15 on the total purchases for those years and also some of the parties are common for this year, if the same percentage is adopted for this year it will take care the additional profit margin gained from the non- genuine transactions entered with the dummy concerns of Shri Bhanwarlal Jain group. Appellant also submitted that the GP for the year is 5.17% and NP is 0.77%, if the percentage for this year is adopted @3% over and above the percentage already admitted, that will meets the end of justice. In view of the above, AO is directed to restrict the addition @3% on the purchases of Rs. 14,86,98,269/- made from the ....