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Income Tax Appellate Tribunal, “SMC” BENCH, MUMBAI
Before: SHRI D. KARUNAKARA RAO
अऩीराथी की ओय से / Appellant by : Shri Deepak Raje प्रत्मथी की ओय से/ Respondent by : Mrs. Beena Santosh, DR सुनवाई की तायीख / Date of Hearing : 11.04.2017 घोषणा की तायीख /Date of Pronouncement : 26.04.2017 आदेश / O R D E R
PER D. KARUNAKARA RAO, AM:
This appeal filed by the assessee on 10.10.2016 is against the order of the CIT (A)-2, Thane dated 14.07.2016 for the assessment year 2009-2010.
In this appeal, assessee raised seven grounds in toto. The solitary and core issue raised in the appeal relates to the correctness of the addition on account of „bogus purchases‟ amounting to Rs. 1,930/-. AO and the CIT (A) made the entire bogus purchases of Rs. 1,930/- as addition u/s 69C of the Act. 3. During the proceedings before the Tribunal, without going to the other aspects, Ld Counsel for the assessee submitted that restricting the disallowance to GP rate of 12.50% of Rs. 1,930/- will meet the ends of justice. Ld AR also submitted that similar additions are made in subsequent years without restricting the addition to GP rate of 12.50%. 4. On hearing both parties, I am of the opinion that making the entire bogus purchases as addition u/s 69C is no longer sustainable in law considering the the Bombay High Court Judgment in the case of Nikunj Eximp Enterpries P Ltd (372 ITR 619) (Bom) and Gujrath High Court Judgment in the case of CIT vs. Simit P Sheth