2023 (7) TMI 1600

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....ssessee is directed against the order of Commissioner of Income Tax (Appeals)-48, Mumbai [ in short 'the CIT(A)'] dated 05/04/2023 for the Assessment Year 2008-09. 2. Shri K. Gopal appearing on behalf of the assessee submitted that, the assessee is engaged in the business of polishing and trading of diamonds. The assessment for Assessment Year 2008-09 in the case of assessee was reopened on the....

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....for the period relevant to Assessment Year 2008-09. In the preceding Assessment Year the G.P was far less. The ld.Counsel for the assessee pointed that G.P in diamonds trade generally ranges between 3% to 5%, he prayed for restricting the addition on alleged bogus purchases by estimating G.P as per industry norms. 4. Per contra, Shri Sunny Kachhwaha representing the Department vehemently defend....

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.... case of N.K. Proteins Ltd. vs. DCIT reported as 250 Taxman 22(SC). 5. Both sides heard, orders of authorities below examined. The assessee in appeal has raised seven grounds. In ground No.1 & 2 of appeal, the assessee has assailed reopening of assessment. The ld.Counsel for the assessee stated at Bar that he is not pressing ground No.1 and 2. In view of the statement made by ld.Counsel for the....

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....he possibility of assessee procuring diamonds from grey market cannot be ruled out. The Hon'ble Bombay High Court in the case of PCIT vs. Paramshakhti Distributors Pvt. Ltd. in Income Tax Appeal No.413 of 2017 decided on 15/07/2019 has held that in such like transactions entire purchases cannot be added. It is only the profit embedded in purchases covered by bogus bills that can be added. Taki....