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Income Tax Appellate Tribunal, MUMBAI BENCH “G”, MUMBAI
Before: SHRI RAJESH KUMAR & SHRI RAM LAL NEGI
Per Rajesh Kumar, Accountant Member:
The present appeal has been preferred by the Revenue against the order dated 17.11.2017 of the Commissioner of Income Tax (Appeals) [hereinafter referred to as the CIT(A)] relevant to assessment year 2009-10.
The only issue raised by the Revenue in both the grounds of appeal is against the order of Ld. CIT(A) directing the AO to make the disallowance @ 12.5% of the bogus purchases as against the 100% disallowance made by the AO.
The Ld. A.R., at the outset, submitted that the cross appeal of the assessee in the instant year has been decided by the co-
2 M/s. Shree Global Tradefin Ltd. ordinate bench of the Tribunal in ITA Nos.7310 to 7313/Mum/2017 vide order dated 15.10.2018 in A.Y. 2009-10 & others directing the AO to assess the profit margin on the bogus purchases @ 3%. The Ld. A.R., therefore prayed that in view of the decision of the co-ordinate bench of the Tribunal the appeal filed by the Revenue has become infructuous and hence may kindly be dismissed.
The Ld. D.R., on the other hand, appeared to be fairly agreed to the contentions of the Ld. A.R. that cross appeal has been decided wherein the profit margin of 3% was directed to be made on the amount of bogus purchases.
After hearing both the parties and perusing the material on record, we observe that the cross appeal of the assessee has been decided by the co-ordinate bench of the Tribunal vide order dated 15.10.2018 in to 7313/Mum/2017(Supra) wherein the co-ordinate bench of the Tribunal has directed that GP @ 3% be applied on the amount of bogus purchases as against 12.5% directed by Ld. CIT(A). Accordingly, we are of the view that the appeal filed by the Revenue is rendered infructuous and is dismissed.
Order pronounced in the open court on 30.04.2019.