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Income Tax Appellate Tribunal, “SMC”, BENCH
Before: SHRI R.C.SHARMA&
Assessee by Shri Hiren Shah (AR) Revenue by Shri R.K. Gubgotra (DR) Date of Hearing 03/02/2020 Date of Pronouncement 04/02/2020 आदेश / O R D E R PER: R.C. SHARMA, A.M. This appeal by the assessee is directed against the order dated 16/11/2018 of ld. CIT(A)-41, Mumbai for the A.Y. 2010-11 in the matter of order passed U/s 143(3) r.w.s. 147 of the Income Tax Act, 1961 (in short, the Act).
Rival contentions have been heard and record perused. Facts in brief are that the assessee is engaged in trading of various types of imported and indigenous ball pen refills. On getting information regarding bogus purchase, the A.O. reopened the assessment and Shah & Shah Writing Enterprises Vs ITO added 100% of such alleged bogus purchases in assessee’s income.
By the impugned order, the ld. CIT(A) has confirmed the action of the A.O..
I have heard the rival contentions and carefully gone through the orders of the authorities below. The ld. AR of the assessee has invited our attention to the documents filed before the A.O. in the form of purchase bills, confirmation of suppliers, bank statement indicating payment so made. It is also clear from the record that neither the A.O. nor the ld. CIT(A) has rejected books of account nor they have declined the claim of corresponding sales having been entered by the assessee, profit on which was also offered in the return of income. Keeping in view the facts and circumstances of the case and various judicial pronouncements on this issue, I am inclined to restrict the addition to the extent of 12.5% of the alleged bogus purchases.
In the result, appeal of the assessee is allowed in part.
Order pronounced in the open court on 04th February, 2020.