CHHAGANLAL SOLANKI,MUMBAI vs. ITO - 19(1)(3) (CURRENTLY ITO WD. 22(1)(3)), MUMBAI

This appeal filed by the assessee on 13.10.2016 is against the order of the CIT (A)-30, Mumbai dated 11.07.2016.

In this appeal, assessee raised four grounds in toto. The core issue in the appeal relates to the correctness of the applicability of GP rate of 12.5% in respect of the „bogus purchases‟ amounting to Rs. 1.56 Crs (rounded of). Other issues raised in grounds no.2 to 4 are not pressed. Accordingly, the said grounds are dismissed as not pressed. 3. Before us, Ld Counsel for the assessee submitted that the Assessing Officer made addition of Rs. 19,56,011/- being 12.5% of the non-genuine purchases of Rs. 1.56 Crs. On appeal, CIT (A) confirmed the same relying on 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 [2013] (356 ITR 451) (Guj.). Aggrieved, assessee is in appeal before the Tribunal. 4. After hearing both the parties and on perusal of the orders of the Revenue Authorities as well as the relevant material placed before the Tribunal, I find, para