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Income Tax Appellate Tribunal, MUMBAI BENCH “A”, MUMBAI
Before: SHRI RAJESH KUMAR & SHRI AMARJIT SINGH
Per Rajesh Kumar, Accountant Member:
The present appeals by the Revenue and the cross objections by the assessee have been preferred against the order dated 20.12.2016 of the Commissioner of Income Tax (Appeals) [hereinafter referred to as the CIT(A)] relevant to assessment year 2009-10.
A.Y. 2009-10 (Revenue’s appeal) & Assessee’s CO No.68/M/2020 A.Y. 2009-10 2. The only issue raised by the Revenue in this appeal is against the deletion of addition by Ld. CIT(A) to the extent of 82% of the bogus purchases as against the 100% disallowance made by the AO towards the bogus purchases. The assessee has filed cross objection challenging the part confirmation of the addition to the extent of 18% of the bogus purchases.
At the outset, the Ld. Counsel of the assessee submitted that the issue of bogus purchases has been decided in the assessee’s own case in A.Y. 2011-12 & ors. vide order dated 09.10.2017 wherein the co-ordinate bench of the Tribunal has directed the AO to make the addition @ 12.50% of the bogus purchases. The Ld. A.R. therefore prayed that in the current year also the facts being same, a rate of 12.5% of the bogus purchases may kindly be added to the income of the assessee.
The Ld. D.R., on the other hand, fairly agreed that in the assessee’s own case in A.Y. 2011-12 a 3 & CO No.68/M/2020 ITA No.4406/M/2019 & CO No.69/M/2020 M/s. Ashtavinayak Construction rate of 12.5% has been directed by the co-ordinate bench of the Tribunal to be applied on the bogus purchases.
After hearing both the parties and perusing the material on record including the impugned order of co-ordinate bench of the Tribunal in A.Y. 2011-12, we find that this issue has been decided by directing the AO to apply a GP rate of 12.50% on the total amount of bogus purchases. We, therefore, respectfully following the same, set aside the finding of the Ld. CIT(A) on this issue and direct the AO to apply a rate of 12.5% on the bogus purchases. Accordingly, the appeal of the Revenue is dismissed and cross objection of the assessee is partly allowed.
ITA No.4406/M/2019 A.Y. 2009-10 (Revenue’s appeal) & Assessee’s CO No.69/M/2020 A.Y. 2009-10 6. The issues raised in this appeal of the revenue and cross objection of the assessee are similar to ones as have been decided by us in and Cross Objection No.68/M/2020 A.Y. 2009-10 in which we have directed the AO to apply a GP rate of 12.5% on the bogus purchases. Our finding on ITA No.4405/M/2019 and Cross Objection No.68/M/2020 A.Y. 2009-10 would, mutatis mutandis, apply to this appeal No.4406/M/2019 and CO No.69/M/2020 A.Y. 2009- 10 as well. Accordingly, appeal of the Revenue is dismissed and CO of assessee is partly allowed.
In the result, the appeals of the Revenue are dismissed and the cross objections of the assessee are partly allowed.
Order pronounced in the open court on 13.01.2021.