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Income Tax Appellate Tribunal, “SMC” BENCH, MUMBAI
This appeal is filed by the Income Tax Officer- 25(2)(1), Mumbai (the learned Assessing Officer) against the order of the National Faceless Appeal Centre (NFAC), Delhi [the learned CIT (A)] for A.Y.2010-11 dated 31st March, 2022, wherein the appeal filed by the assessee against the assessment order dated 29th February, 2016 passed under Section 143 read with section 147 of the Income-tax Act, 1961 (the Act), by the Income Tax Officer, making addition of ₹14,25,132/- being 12.5% of non-genuine purchase of ₹1,14,01,054/- was restricted by the learned CIT (A) to 8% following the order of the co-ordinate Bench in assessee’s own case for A.Y. 2009-10.
“1. Whether, on the facts and in the circumstance of the case and in law, the Learned CIT (A) has erred in restricting the disallowance to 8% of accommodation entries of purchase bills, which according to information received from Sales Tax Department were issued by dealers who are indulging in issuing bogus bills and not disputed by CIT(A), as against addition of 12.5% on total bogus purchase by Assessing Officer without giving any congent reason as to why disallowance of 8% should be done and not 12.5% as done by the Assessing Officer?.
Whether, on the facts and circumstances of the case and in law, the learned CIT(A) was correct in holding that estimation of profit of 8% instead of 12.5% of bogus purchases, is fair and justified, and failing to appreciate that the assessee could neither produce documentary evidence nor the books of accounts nor he could produce the alleged parties from whom purchase were claimed to have been made during the year.”
The brief fact of the case shows that assessee is an individual , Proprietor of M/s Gandhi Enterprises engaged in the business of trading in Iron and Steel. He filed his return of income on 13th October 2010, at a total income of ₹3,42,984/-. Subsequently, the information was received from the DGIT Investigation, Mumbai that assessee has booked purchased for an amount of ₹1,14,00,154/- from 9 parties who figured into the list of
In the result, the appeal of the learned Assessing Officer is dismissed.
Order pronounced in the open court on 31.10.2022.