2021 (7) TMI 1471

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....ni Jain, A.R. For the Revenue : Shri Gurbinder Singh, D.R. ORDER PER RAJESH KUMAR, ACCOUNTANT MEMBER: The above titled three appeals have been preferred by the same assessee against the orders dated 29.02.2016 & 08.12.2017 of the Commissioner of Income Tax (Appeals) [hereinafter referred to as the CIT(A)] relevant to assessment year 2009-10 & 2011-12. 2. The assessee has filed three....

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....of the Act by issuing notice under section 148 that assessee has obtained bogus bills to the tune of Rs. 5,59,52,213/- from 13 hawala parties. During the course of assessment proceedings the AO called for various details and explanation from the assessee to prove the genuineness of the purchases which were duly filed before the AO. However, the AO was not satisfied with the genuineness of the purc....

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....rious type of paper. The Ld. A.R. submitted before us that the profit margin on these items is very meager and therefore the application of 12.5% on the bogus purchases is unfair and impractical as it was lead to unrealistic higher profit of the assessee. The ld. A.R., therefore, prayed that the GP may kindly be reduced on the basis of GP rate of the assessee which varies from 1% to 3%. 7. The ....

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....ed the appeal of the assessee by following the decision of Hon'ble Gujarat High Court in the case of CIT vs. Simit P. Sheth (2013) 356 ITR 451 (Guj) on the ground that only profit element in the bogus purchases could be brought to tax and directed the AO accordingly. Now being aggrieved by the order of Ld. CIT(A) the assessee has stated that the GP of 12.5% as directed by the Ld. CIT(A) is excessi....