ITO 22 (1)(5), MUMBAI vs. M/S GOLD COIN FASHION, MUMBAI

This appeal by Revenue is against the order of Commissioner of Income Tax (Appeals) -34, Mumbai [in short ‘the CIT(A)’] dated 09/05/2019 for the assessment year 2010-11.

Submission made by ld. Departmental Representative heard, orders of authorities below examined. The assessee is in the business of manufacturing and trading of readymade garments. The assessee had obtained bogus purchase bills amounting to Rs.1,77,408/- from M/s. Sakhti Trading Company, a declared hawala operator. In assessment proceedings the Assessing Officer made addition of Rs.44,352/- by estimating 25% margin of profit on bogus purchases. In First Appellate proceedings the CIT(A) restricted the addition at 12.5% on bogus purchases. The assessee has declared G.P of 14.05% for the relevant period. In my considered view estimation of G.P by Assessing Officer is very much on the higher side. I concur with the findings of the CIT(A), hence, the impugned order warrants no interference. The same is upheld and the appeal by Revenue is dismissed, sans merit.