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Income Tax Appellate Tribunal, “SMC”, BENCH
Before: SHRI R.C.SHARMA&
आदेश / O R D E R PER: R.C. SHARMA, A.M. These are the cross appeals filed by the assessee and revenue against the separate orders of the ld. CIT(A)-56, Mumbai dated respectively 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 business of trading of pipes and hardware. The assessment was reopened on the basis of information from the Sales Tax Department, thereafter the A.O. added 12.5% of the alleged bogus purchases as profit in the assessee’s income. By the impugned order, the ld. CIT(A) after giving detailed finding, restricted the addition to the extent of 8.5%. It was brought to our notice that the business of the assessee has been closed since last 7-8 years and the assessee is confined to bed because of various diseases. Medical certificates were also placed on record.
From the record I found that before the A.O., the assessee has produced purchases bills, delivery challan, copy of bank statement etc.
Keeping in view the gross profit declared by the assessee, further addition at 8.5% will be excessive, therefore, keeping in view the entirety of facts and circumstances of the case, we direct the A.O. to restrict the addition to the extent of 6% in both the years under consideration. I direct accordingly. the assessee are allowed in part.
Order pronounced in the open court on 04th February, 2020.