2017 (2) TMI 1572

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....is is assessee's appeal. The first ground about challenging the validity of invoking section 147 is not pressed and is dismissed. Apropos the remaining grounds of appeal, read as under: "2. Unlawful estimation of profit margin The learned CIT(A) erred in law and on facts and circumstances of the case in confirming the additions of Rs.98,103/- and Rs.8,20,300/- being 20% of variou....

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....mounting to Rs.98,103/-. Aggrieved, the assessee preferred first appeal and learned CIT(A) upheld the order of the AO by following observation: "As narrated earlier, the Ld. A.O. in this case has held that the parties from whom the purchases were made by the appellant were found to be bogus and that is the reason for which it was not produced during the assessment proceedings. Not having ....

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.....5% to 25% have been upheld by the Hon'ble Gujarat High Court, depending upon the nature of the business. As held in the case of Simit P Sheth (supra), no uniform yardstick could be applied to estimate the rate of profit and it varies with the nature of business. Taking all facts into consideration as also the findings of the Hon'ble Courts on this issue and the fact that direct one to one relatio....

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.... 25% However, in this case the VAT element charged being 5% disallowance is excessive, it may be suitably reduced. 4. The learned DR on the other hand, contends that: i) The disallowance has not been made on presumption but on finding that the assessee was procuring bogus bills as the sellers mentioned in the invoices were non-existent. ii) The bills of Ganesh Trading....