2024 (5) TMI 1616

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.... order on the following grounds before us: "1. On the facts and in the circumstances of the case, the id. CIT(A), hereinafter referred to as the ld. CIT(A). has erred in assessing Total Income of the Appellant at Rs. 51,45,790/- instead of Rs. 2,33,550/- as returned by the Appellant. The returned Income of the Appellant may please be accepted 2. On the facts and in the circumstances of the case, the ld. CIT(A), has erred in making addition of G.P of 12.5 percent of Hawala Parties of Rs.3,92,97,967/- which result in addition of Rs.49,12,246/-. The said addition may please be deleted. 3. On the facts and in the circumstances of the case and in law, the assessment order passed by the ld. AO is in violation of the pri....

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....e through account payee cheques, etc. The assessee has also submitted that he has shown corresponding sales of materials alleged to be purchased from Havala parties and had offered income thereon for tax. Further, the AO has not agreed with the submissions of the assessee and stated that by taking accommodation entries the assessee has made purchases in cash from gray market and taken accommodation bills from some accommodation parties for the purpose of artificially reducing gross profit. Therefore, the AO has estimated the gross profit @ 12.5% of unverifiable purchases of Rs.3,92,97,967/- and an amount of Rs.49,12,246/- was added to the total income of the assessee. 4. The assessee filed appeal before the ld. CIT(A). The ld. CIT(A) dis....

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....judicated in the case of the assessee by the Coordinate Bench in ITA No. 4214/Mum/2023 dated 29.04.2024. The relevant part of the decision is extracted as under: -` "8. We heard the rival submission and considered the documents available on the record. The assessee is a trader of ferrous and nonferrous metal. The assessment was completed under section 143(3) and the gross profit of the traders in the business lines at 5.66% is duly accepted by the Ld. Assessing Officer. In the assessment under section 143(3) / 147 was completed and the entire bogus purchases of Rs.88,17,762/- was taken and @25% was added back. The assessee submitted that the sale value of the bogus purchases amount to Rs. 90,99,865/- and purchase value amount to Rs....