VISHAL PRAKASH AGARWAL,MUMBAI vs. ITO WARD - 30 (3)(4), MUMBAI

In this appeal, the assessee is basically aggrieved by the action of ld. CIT(A) for upholding the addition to the extent of 12.5% of bogus purchases.

At the outset, the ld AR of the assessee placed on record the order of the Coordinate Bench dated 31/07/2017 in the group concern wherein with respect to similar bogus purchases, addition was sustained to the Vishal Prakash Agarwal Vs ITO extent of 4%. The ld AR also filed statement regarding gross profit rate declared by the assessee in the current year and subsequent years and also reliance was placed on the various judicial pronouncements.

On the other hand, the ld DR has relied on the orders of the authorities below.

I have considered the rival submissions and carefully gone through the orders of the authorities below and found that the Coordinate Bench in the case of group concern M/s Kamal P Agarwal Vs ITO for the very same assessment year vide order dated 31/07/2017 has upheld the addition to the extent of 4% with respect to purchases made from very same parties from which the assessee has purchased. As the facts and circumstances of the present case are same and the purchases by the assessee was also made from the very same party, which was found to be bogus in the case of Kamal P Agarwal wherein vide order dated 31/7/2017, the Tribunal have restricted the addition to the extent of 4%, respectfully following the same, I direct the A.O. to restrict the addition to the extent of 4%. I direct accordingly.

In the result, appeal of the assessee is allowed in part. Order pronounced in the open court on 06th December, 2019.