2020 (12) TMI 1398

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....BER For the Assessee : None For the Revenue : Shri Vijay Jaiswal, D.R. ORDER PER RAJESH KUMAR, ACCOUNTANT MEMBER: The above cross appeals one by the assessee and the other by the Revenue have been preferred against the order dated 13.08.2018 of the Commissioner of Income Tax (Appeals) [hereinafter referred to as the CIT(A)] relevant to assessment year 2011-12. 2. At the outset we....

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....fter, the case of the assessee was selected under scrutiny after issuing and serving upon the assessee the statutory notices. During the course of assessment proceedings the AO on the basis of information received from Sales Department, Government of Maharashtra noted that assessee has made some bogus accommodation purchase entries from 21 parties as mentioned in page No. 2 of the assessment order....

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....ide order dated 21.03.2014. 5. In the appellate proceedings, the Ld. CIT(A) applied a GP rate of 12.5% on the said bogus purchases by following the decision of Hon'ble Gujarat High Court in the case of CIT vs. Simit P. Sheth (2013) 356 ITR 451 (Guj) and thus partly allowed the appeal of the assessee. 6. Aggrieved by the order of Ld. CIT(A) the assessee as well as Revenue is in appeal before ....

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.... ferrous steel items ,the profit GP can not exceed 3 to 4%. Though the Ld. CIT(A) has correctly followed the Hon'ble Gujarat High Court decision in the case of CIT vs. Simit P. Sheth (supra), however, the rate applied is on the higher side. We are, therefore, of the view that it would be reasonable if the GP rate @ 5% is applied on the said bogus purchases to bring the additional income on bogus p....