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Income Tax Appellate Tribunal, “SMC”, BENCH MUMBAI
Before: SHRI R.C.SHARMA, AM Smt. Ranuka B. Shah
आदेश / O R D E R PER R.C.SHARMA (A.M): This is an appeal filed by the assessee against the order of CIT(A)- 40, Mumbai dated 19/08/2016 for the A.Y.2009-10 in the matter of order passed u/s.143(3) r.w.s. 147 of the IT Act. 2. In this appeal, assessee is aggrieved for addition made by applying 12.5% on the bogus purchases made by assessee during the year. 3. Facts in brief are that the assessee is an Individual, deriving income from proprietary business carried on under the name and style M/s. Mukti Garments engaged in the business of trading in Garments, Return of Income voluntarily filed on 23/09/2009 declaring total income at Rs.7,56,870/-. The assessment was reopened u/s.148 based on the information received from sales tax department stating that extensive investigation on the various VAT dodgers, who were know to be issuing Smt. Renuka B. Shah accommodation bills, The assessee is beneficiary who allegedly booked purchases worth Rs.1,47,44,517/- The assessee produced and filed the details and explanation in respect of purchases made. The learned Assessing Officer without accepting the details and explanation of the assessee, made the addition of Rs.18,43,065/- to the income, determined in the order passed u/s.143(3) dated 30/12/2011.
By the impugned order, CIT(A) restricted the addition to 12.5% of such purchases, against which assessee is in further appeal before us.
I have considered rival contentions and gone through the orders of the authorities below and found from record that assessee has declared GP of 12.19% during the year under consideration, which is better than GP rate declared by assessee in the A.Y.2008-09 at 11.19% which was also accepted by the Department in the scrutiny assessment u/s.143(3) vide order dated 30/02/2011.
Keeping in view the totality of facts and circumstances vis-à-vis, GP accepted by the Department under scrutiny assessment, I direct AO to restrict addition to the extent of 5% of such bogus purchases. I direct accordingly.