2023 (7) TMI 285

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....is against the order passed by the Income Tax Appellate Tribunal, Mumbai ('ITAT') on 07/06/2017 for the Assessment Year 2010- 11 by which ITAT sustained addition towards gross profit on bogus purchases but reduced the same from 12% to 8%. 2. The substantial questions of law proposed are as under: a) Whether in law and on the facts and circumstances of the case, was the Tribunal order not perver....

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....sessee to file details of purchases made during the year along with names and addresses of the suppliers. During this process, AO found from the website of the Government of Maharashtra, Sales Tax Department certain parties from whom assessee had made certain purchases were engaged in providing accommodation entries in respect of bogus purchases. The AO claims to have issued notice under Section 1....

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....uineness of those payments. It is of course recorded that the notices sent to those persons came back undelivered and assessee was unable to provide any actual delivery challans. What is material to note is that the purchases themselves were not being disputed and what is disputed is genuineness of the sellers. Therefore, in view of these factors, CIT(A), relying on a judgment of the Gujarat High ....

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....%. 6. Ms. Nagaraj submitted that except reproducing the portion of the order of CIT(A), no reasons have been given as to why it should be reduced from 12% to 8%. 7. What is sufficient reason would vary from case to case and having considered paragraph 6 of the impugned order, we are satisfied that what has weighed in the mind of ITAT is that assessee had already declared 7.5% as gross profit. Of....