How many judgments cite CIT v. Simit P. Sheth?

1,465 judgments on BharatTax cite CIT v. Simit P. Sheth (356 ITR 451), spanning 2016 to 2026.

Which sections of the Income Tax Act does CIT v. Simit P. Sheth come up under?

It is most often cited in judgments turning on Section 143(3), Section 147, Section 148, Section 132, Section 131, Section 69C.

CIT v. Simit P. Sheth

356 ITR 451High Court2013#27 most cited

What is CIT v. Simit P. Sheth authority for?

Additions for alleged bogus purchases should be restricted to the profit element, not the entire turnover. The profit element is often estimated at 12.5% of the purported bogus purchases.

1,465

judgments rely on this decision, according to BharatTax’s citation analysis of 367,368 Indian tax judgments — from 2016 to 2026.

Also referred to as

CIT v. Simit P. Sheth · section 69C · bogus purchases · undisclosed income · addition on profit element · gross profit · net profit · reassessment · assessment procedure

Also reported as

38 Taxmann 385

Sections most often in play

Section 143(3)Section 147 Section 148 Section 132 Section 131 Section 69C Section 133(6)Section 143(2)

Issues it is cited on

section 69c section 131 section 133(6)reassessment proceedings undisclosed income search and seizure section 69 section 132 section 13 section 148 business section 147

Judgments citing CIT v. Simit P. Sheth

Kolshet Ispat Udyog Limited, Mumbai vs. DCIT. Circle- 1, Thane

In the result, the appeal of the assessee is partly allowed

ITA 5102/MUM/2018[2009-10]Status: DisposedITAT Mumbai22 Oct 2019AY 2009-10

Bench: Shri Vikas Awasthy & Shri Rajesh Kumarassessment Year: 2009-10

For Appellant: Shri Vimal Punmiya, A.RFor Respondent: Shri R. Bhoopathi, D.R

Section 143(1)Section 147Section 148

…IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “SMC”, MUMBAI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER Assessment Year: 2009-10 M/s. Kolshet Ispat Udyog DCIT, Circle -1, Ltd., Ashar I.T. Park, 6th Floor, D-1003, Lake Castle, Vs. B Wing, Room No.22, Hiranandani Gardens, Road No.16Z, Powai, Mumbai – 400 071 Wagle Industrial Estate, PAN: AABCK2831B Thane (W) – 400 604 (Appellant) (Respondent) Present for: Assessee by : Shri Vimal Punmiya, A.R. Revenue by : Shri R. Bhoopathi, D.R. Date of Hearing : 18.09.2019 Date of Pronouncement : 22.10.2019 O R D E R Per Rajesh Kum…

Timex Art Decor Private Limited, Mumbai vs. Assistant Commissioner of Income Tax 11(3)(1), Mumbai

In the result, appeal filed by the assessee for Asst

ITA 7293/MUM/2017[2009-10]Status: DisposedITAT Mumbai18 Oct 2019AY 2009-10

Bench: Shri Sandeep Gosain & Shri G. Manjunatha

Section 143(3)Section 147

…rd party. The Ld.CIT(A), after considering relevant submission of the assessee and also, on analysis of information collected during the course of search and also by following the decision of Hon’ble Gujarat High Court, in the case of CIT vs. Simith P. Sheth (356 ITR 451) scaled down profit estimated by the AO from 12.50% to 8.80% on alleged bogus purchases for both assessment years. 5. We have heard rival contenstions of both parties, perused the material available on record and gone through orders of the authorities below along with case laws cited by both sides. We find that the Ld. AO has made addition towar…

Mr Anil Agarwal, Mumbai vs. Income Tax Offer Ward 1(1), Thane

In the result, appeal filed by the assessee is partly allowed

ITA 4682/MUM/2018[2009-10]Status: DisposedITAT Mumbai17 Oct 2019AY 2009-10

Bench: Shri Mahavir Singh & Shri G. Manjunatha

Section 143(3)Section 147Section 3

…d.CIT(A), after considering relevant submission of the assessee and also, on analysis of information collected during the course of appellate proceedings and also by following the decision of Hon’ble Gujarat High Court, in the case of CIT vs. Simith P. Sheth (356 ITR 451), scaled down estimation of profit from 12.50% to 8%. The relevant findings of the Ld.CIT(A) are as under:- 7. I have carefully considered the appellant's submissions, observations of the AO in the assessment order and the facts of the case The appellant had shown purchases amounting to Rs 1,00,04992/- in AY 2009-10 and Rs 49,07,280/- in AY 2010…

Late Nirmala Mevalal Verma (Thru Legal Heir Rameshchandra M. Verma), Mumbai vs. ITO 21 (3)(4), Mumbai

In the result, the appeal of assessee is partly allowed

ITA 5510/MUM/2018[2011-12]Status: DisposedITAT Mumbai16 Oct 2019AY 2011-12

Bench: Sri Mahavir Singh, Jm & Sri G Manjunatha, Am Aayakr Apila Sam./ Ita No. 5510/Mum/2018 (Inaqa-Arna Baya- / Assessment Year:2011-12) Late Nirmala Mevalal Verma Income Tax Officer, Ward-21(3)(4), Through Legal Heir Rameshchandra Mumbai (Respondent) M. Verma, Room No. 19, Mishra Vs. Chawl, Kajupada,Pipe Line, Jarimari, Kurla, Mumbai 400072 Apilaaqai- / Appellant) (P`%Yaqaai-/ Respondent) . स्थायीलेखा िं./Pan No. Aaapv5903B अपीलाथीकीओर े/ Appellant By : Shri Sameer G. Dalal, Ar प्रत्यथीकीओर े/ Respondent By : Shri Akhtar H. Ansari, Dr ुनवाईकीतारीख/ Date Of Hearing: 16-10-2019 घोषणाकीतारीख/ Date Of Pronouncement : 16-10-2019

For Appellant: Shri Sameer G. Dalal, ARFor Respondent: Shri Akhtar H. Ansari, DR

Section 133(6)Section 143(3)Section 147

…t produced in response to notices issued u/s 133(6) of the Act. Hence, we are of the view that only alternative left is that a reasonable profit can be estimated in view of the decision of Hon’ble Gujarat High court in the case of CIT vs. Smith P. Seth (2013) 356 ITR 451 (Guj). Hence, we direct the AO to recompute the income after applying profit rate at the rate of 12.5% and compute the income accordingly. This issue of assessee’s appeal is partly allowed. 6. The next issue in this appeal of assessee is against the order of the CIT(A) confirming the action of the AO in upholding the disallowance of commission o…

ITO - 25(3)(4), Mumbai vs. Sonika P. Shetty, Mumbai

In the result, appeal filed by the revenue is dismissed

ITA 5508/MUM/2018[2010-11]Status: DisposedITAT Mumbai16 Oct 2019AY 2010-11

Bench: Shri Mahavir Singh & Shri G. Manjunatha

Section 143(3)Section 147Section 40A(3)

…rd party. The Ld.CIT(A), after considering relevant submission of the assessee and also, on analysis of information collected during the course of search and also by following the decision of Hon’ble Gujarat High Court, in the case of CIT vs. Simith P. Sheth (356 ITR 451) has scaled down addition to 12.50% profit on alleged bogus purchases. The relevant findings of the Ld.CIT(A) are as under:- 5.8 The A.O. had made the addition as some of the suppliers were declared hawala dealers by the VAT Department. This may be a good reason for making further investigation but the AO did not make any further Investigation a…

Krutarth Shah, Mumbai vs. ITO 28 (2)(1), Mumbai

In the result, appeal filed by the revenue is dismissed and appeal filed by the assessee is partly allowed

ITA 5499/MUM/2018[2010-11]Status: DisposedITAT Mumbai16 Oct 2019AY 2010-11

Bench: Shri Mahavir Singh & Shri G. Manjunatha

Section 133(6)Section 143(3)Section 147

…dditions could be made on the basis of information received from third party. The Ld.CIT(A), after considering relevant submission of the assessee search and also by following the decision of Hon’ble Gujarat High Court, in the case of CIT vs. Simith P. Sheth (356 ITR 451) scaled down addition to 15% profit on alleged bogus purchases. The relevant findings of the Ld.CIT(A) are as under:- 4.5 I have considered the facts of the case and the appellant's submissions. As per the investigations carried out by the Sales Tax Authorities, the above mentioned two parties were found to be involved in giving accommodation en…

ITO - 24 (3)(3), Mumbai vs. Prashant Umesh Kalbaug, Mumbai

In the result, the appeal of the Revenue is dismissed

ITA 5491/MUM/2018[2009-10]Status: DisposedITAT Mumbai16 Oct 2019AY 2009-10

Bench: Sri Mahavir Singh, Jm & Sri G Manjunatha, Am Aayakr Apila Sam./ Ita No. 5491/Mum/2018 (Inaqa-Arna Baya- / Assessment Year 2009-10) Ito-24(3)(3), Mumbai. Vs. Shri Prashant Umesh Kalbaug 1/B, Dasmesh Colony, Four Bunglows, Andheri (W), Mumbai 400 058. . (Apilaaqai- / Appellant) (P`%Yaqaai-/ Respondent) स्थायीलेखा िं./Pan No. Acypk5369E अपीलाथी की ओर े/ Appellant By : Shri Akhtar H. Ansari प्रत्यथी की ओर े/ Respondent By : Shri Keshav B. Bhujle ुनवाई की तारीख/ Date Of Hearing: 16-10-2019 घोषणा की तारीख/ Date Of Pronouncement : 16-10-2019 Aadosa/ O R D E R महावीर स िंह, न्याययक दस्य/ Per Mahavir Singh, Jm: This Appeal Is Filed By The Revenue Against The Order Of Cit(A)-36, Mumbai Dated 27.04.2018 For Assessment Year 2009-10 Which In Turn Has Arisen From Order Of Assessing Officer Passed Under Section 143(3) R.W.S. 147 Of The Income Tax Act, 1961 (In Short ‘The Act’) Dated 12.11.2014. The Only Issue On Merits, In This Appeal Of Revenue Is Against 2. The Order Of Cit(A) Restricting The Addition Of The Ao In Estimating The Profit Rate At 12.5% Of The Bogus Purchases.

For Appellant: Shri Akhtar H. AnsariFor Respondent: Shri Keshav B. Bhujle

Section 143(3)

…. Aggrieved, assessee preferred the appeal before CIT(A), who sustained the disallowance at 12.5% of the bogus purchases by observing in para 4.2.6 & 4.2.7 and by following the decision of Hon’ble Gujarat High court in the case of CIT vs. Smith P. Seth (2013) 356 ITR 451 (Guj) by observing as under: - “4.2.6 Thus, a study of different cases, wherein addition on account of bogus purchases has been dealt with by various Courts and Tribunals shows that such additions have been upheld in their entirety only in a few cases including decisions rendered in the cases of La Medica, Sri Ganesh Rice Mills, Vicky Foods (P.…

ITO - 24 (3)(5), Mumbai vs. Rajnish Madan Mehra, Mumbai

In the result, appeal filed by the revenue is dismissed

ITA 5488/MUM/2018[2010-11]Status: DisposedITAT Mumbai16 Oct 2019AY 2010-11

Bench: Shri Mahavir Singh & Shri G. Manjunatha

Section 143(3)Section 147

…rd party. The Ld.CIT(A), after considering relevant submission of the assessee and also, on analysis of information collected during the course of search and also by following the decision of Hon’ble Gujarat High Court, in the case of CIT vs. Simith P. Sheth (356 ITR 451) scaled down addition to 12.50% profit on alleged bogus purchases. The relevant findings of the Ld.CIT(A) are as under:- 4.2.6 Thus, a study of different cases, wherein addition on account of bogus purchases has been dealt with by various Courts and Tribunals shows that such additions have been upheld In their entirety only in a few cases includ…

Navdeep Metals, Mumbai vs. ITO - 19 (2)(4), Mumbai

In the result, the appeal of assessee is partly allowed

ITA 5484/MUM/2018[2011-12]Status: DisposedITAT Mumbai16 Oct 2019AY 2011-12

Bench: Sri Mahavir Singh, Jm & Sri G Manjunatha, Am Aayakr Apila Sam./ Ita No. 5484/Mum/2018 (Inaqa-Arna Baya- / Assessment Year:2011-12) Navdeep Metals Vs. Ito, Ward-19(2)(4), C/O. D.C. Bothra & Co. Llp (Ca) Mumbai. (Formerly Known As D.C. Bothra & Co.) 297, Tardeo Road, Wille Mansion, 1St Floor, Opp. Bank Of India, Nana Chowk, Mumbai 400 007. (Apilaaqai- / Appellant) (P`%Yaqaai-/ Respondent) . स्थायीलेखा िं./Pan No. Aabfn5375N अपीलाथी की ओर े/ Appellant By : Shri Akhtar H. Ansari प्रत्यथी की ओर े/ Respondent By : Shri Rajkumar Singh ुनवाई की तारीख/ Date Of Hearing: 16-10-2019 घोषणा की तारीख/ Date Of Pronouncement : 16-10-2019

For Appellant: Shri Akhtar H. AnsariFor Respondent: Shri Rajkumar Singh

Section 143(3)Section 147

…e. Aggrieved, assessee preferred the appeal before CIT(A), who sustained the disallowance at 12.5% of the bogus purchases by observing in para 6.2.13 & 6.3 and by following the decision of Hon’ble Gujarat High court in the case of CIT vs. Smith P. Seth (2013) 356 ITR 451 (Guj) by observing as under: - “6.213 Further, the courts have taken a view that in case of non-existent parties from whom the purchase are shown to have been made, the most logical approach would be that only part of such purchases can be disallowed, in the cases where the corresponding sales are treated as genuine, or alternatively the profit…

ITO 28(2)(1), Mumbai vs. Shri Krutarth Atul Shah, Mumbai

In the result, appeal filed by the revenue is dismissed and appeal filed by the assessee is partly allowed

ITA 5278/MUM/2018[2010-11]Status: DisposedITAT Mumbai16 Oct 2019AY 2010-11

Bench: Shri Mahavir Singh & Shri G. Manjunatha

Section 133(6)Section 143(3)Section 147

ITO - 27(1)(1), Mumbai vs. Ankit Ajit Doshi, Mumbai

In the result, this appeal filed by the revenue is hereby dismissed

ITA 4964/MUM/2018[2010-11]Status: DisposedITAT Mumbai16 Oct 2019AY 2010-11

Bench: Shri Shamim Yahya, Am & Shri Amarjit Singh, Jm आयकर अपील सं/ I.T.A. Nos. 4964 & 4965/Mum/2018 (निर्धारण वर्ा / Assessment Years: 2010-11 & 2011-12) Ito-27(1)(1) बिधम/ Shri Ankit Ajit Doshi Tower No.6, 4Th Floor, Room 13/B, Vallabh Chsl, Tilak Vs. No. 406, Vashi Rly. Station Road, Opp. Ashirwad Heart Complex, Vashi, Navi Hospital, Ghatkopar, Mumbai. Mumbai-77. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aidpd8631P (अपीलाथी /Appellant) (प्रत्यथी / Respondent) .. Revenue By: Shri Chaitanya Anjaria (Dr) Assessee By: None सुनवाई की तारीख / Date Of Hearing: 05/09/2019 घोषणा की तारीख /Date Of Pronouncement: 16/10/2019 आदेश / O R D E R Per Amarjit Singh, Jm: The Revenue Has Filed The Above Mentioned Appeals Against The Different Order Passed By The Commissioner Of Income Tax (Appeals) -24, Mumbai [Hereinafter Referred To As The “Cit(A)”] Relevant To The A.Ys. 2010-11 & 2011-12. Ita. No. 4964/M/2018 2. The Revenue Has Filed The Present Appeal Against The Order Dated 07.05.2018 Passed By The Commissioner Of Income Tax (Appeals) -24, Mumbai [Hereinafter Referred To As The “Cit(A)”] Relevant To The A.Y.2010- 11. Ita Nos. 4964 & 4965/M/2018 A.Ys. 2010-11 & 2011-12 3. The Assessee Has Raised The Following Grounds: -

For Appellant: NoneFor Respondent: Shri Chaitanya Anjaria (DR)

Section 69C

…8 panics and it was seen that the same amounts to Rs.4,79,600/- as bogus purchase and added the same to the total income of the appellant. A.Ys. 2010-11 & 2011-12 Under similar circumstances the Hon'ble High Court of Gujarat in the case of Simit P Seth, 2013 (356 ITR 451) had on occasion to deliver its judgment by confirming the decision of the FIAT which has estimated the disallowance at: 12.5% of the disputed bogus purchases to meet-the end of Justice. The head- note of the decision is reproduced as under- 'Section 145 of the Income-Tax Act, 1961- Method of Accounting- Estimation of Profits [ Bogus Purchases]-…

Industrial Engineers Distributors Pvt. Ltd., Mumbai vs. ITO 4 (2)(3), Mumbai

In the result, the appeal of assessee is partly allowed

ITA 5974/MUM/2018[2009-10]Status: DisposedITAT Mumbai15 Oct 2019AY 2009-10

Bench: Shri Vikas Awasthy & Shri Rajesh Kumarassessment Year : 2009-10 Industrial Engineers Distributors Income Tax Officer-4(2)(3), Pvt. Ltd., Mumbai Vs. 182, Gopal Niwas, Lohar Chawl, Mumbai [Pan : Aabci5672E] (Appellant) (Respondent)

For Appellant: Shri Jitendra Singh, ARFor Respondent: Shri Ram Tiwari, DR

Section 133(6)Section 143(1)Section 143(3)Section 147Section 148

…d u/s.143(3) r.w.s. 147 of the Act, dt.27-03-2015. 6. In the appellate proceedings, Ld.CIT(A) confirmed the order of AO by relying on the decision of the Hon'ble Gujarat High Court in the case of Hon'ble Gujarat High Court in the case of Simit P.Sheth (2013) [356 ITR 451] (Guj). 7. Ld.AR vehemently argued before us that the assessee is dealing in electronic goods and the Gross Profit of the assessee during the year is about 7%. Ld.AR also submitted that in order to prove the purchases, assessee has filed all the necessary evidences .The ld AR argued that the ld CIT(A) has ignored the circumstantial evidences whi…

ACIT- 27 (3), Mumbai vs. Virtex Engineers, Mumbai

In the result, appeal filed by the revenue is dismissed

ITA 5692/MUM/2018[2009-10]Status: DisposedITAT Mumbai15 Oct 2019AY 2009-10

Bench: G. Manjunatha & Shri Ram Lal Negiacit-27(3) Vs. Virtex Engineers Room No.423, 4Th Floor 3A, Ashirwad Building, Tower No.6, Vashi Railway Govandi Road, Chembur Station Complex, Vashi Mumbai-400 071 Navi Mumbai-400 703 Pan/Gir No.Aaafv1343D (Appellant) .. (Respondent)

Section 143(3)Section 147

…rd party. The Ld.CIT(A), after considering relevant submission of the assessee and also, on analysis of information collected during the course of search and also by following the decision of Hon’ble Gujarat High Court, in the case of CIT vs. Simith P. Sheth (356 ITR 451) scaled down addition to 12.50% profit on alleged bogus purchases. The relevant findings of the Ld.CIT(A) are as under:- 5.3 Having considered the assessment order of the AO and the submissions of the assessee, it is seen that the main plunk of assessee’s arguments regarding the genuineness of the purchases was that the payment has been made by…

ITO 24 (2)(3), Mumbai vs. Kailash S. Makhija, Mumbai

In the result, appeal filed by the revenue is dismissed

ITA 5470/MUM/2018[2009-10]Status: DisposedITAT Mumbai15 Oct 2019AY 2009-10

Bench: Shri Mahavir Singh & Shri G. Manjunathaito, Ward-24(2)(3) Vs. Kailash S Makhija Room No.609, 6Th Floor 405, Basera Piramal Chambers, Parel Lokhandwala Complex Mumbai-400 012 Andheri(West) Mumbai-400 053

Section 143(3)Section 147

…A), after considering relevant submission of the assessee 3 Kailash S Makhija and also, on analysis of information collected during the course of search and also by following the decision of Hon’ble Gujarat High Court, in the case of CIT vs. Simith P. Sheth (356 ITR 451) scaled down addition to 8% profit on alleged bogus purchases. The relevant findings of the Ld.CIT(A) are as under:- 4.2.6 Thus, a study of different cases, wherein addition on account of bogus purchases has been dealt with by various Courts and Tribunals shows that such additions have been upheld in their entirety only in a few cases including…

Shivaji Andhale, Mumbai vs. ITO 28 (3)(2), Mumbai

In the result, appeal filed by the assessee is allowed for statistical purposes

ITA 5469/MUM/2018[2010-11]Status: DisposedITAT Mumbai15 Oct 2019AY 2010-11

Bench: Shri Mahavir Singh & Shri G. Manjunathashivaji Andhale Vs. Ito-28(3)(2) 18-B Mangalam Plot No.7, Mumbai Sector-4A, Koparkharine Mumbai

Section 133(6)Section 147Section 3

…rd party. The Ld.CIT(A), after considering relevant submission of the assessee and also, on analysis of information collected during the course of search and also by following the decision of Hon’ble Gujarat High Court, in the case of CIT vs. Simith P. Sheth (356 ITR 451) confirmed addition made by the AO towards 12.50% profit on alleged bogus purchases. The relevant findings of the Ld.CIT(A) are as under:- 5.3 I have considered the facts of the case and the appellant's submissions. As per the investigations carried out by the Sales Tax Authorities, Ins above mentioned 6 parties were found to be involved in givi…

Solution Inc, Mumbai vs. ITO - 25 (1)(2), Mumbai

In the result, appeal filed by the assesse is dismissed

ITA 5458/MUM/2018[2010-11]Status: DisposedITAT Mumbai15 Oct 2019AY 2010-11

Bench: Shri Mahavir Singh & Shri G. Manjunathasolution Inc Vs. Ito-25(1)(2) Unit No.4, Mumbai Maplle-Morya Classic Plot No.B-18, Off New Link Road Near Infinity Mall Andheri (West) Mumbai-400 053

Section 143(3)Section 147

…rd party. The Ld.CIT(A), after considering relevant submission of the assessee and also, on analysis of information collected during the course of search and also by following the decision of Hon’ble Gujarat High Court, in the case of CIT vs. Simith P. Sheth (356 ITR 451) scaled down addition to 12.50% on alleged bogus purchases. The relevant findings of the Ld.CIT(A) are as under:- 5.6 On consideration of the facts available an record it is seen that information uploaded by the State Sates Tax authorities wherein the said Department put up lists of parties found to be engaged In Issuing false bills without actu…

Income Tax Officer Ward 1(4), Thane vs. Luke Martin Fernandes, Mumbai

In the result, appeal filed by the revenue is dismissed

ITA 5336/MUM/2018[2010-11]Status: DisposedITAT Mumbai15 Oct 2019AY 2010-11

Bench: G. Manjunatha & Shri Ram Lal Negiito,Ward-1(4) Vs. Luke Martin Fernandes Room No.11 B-2/104, Raunak Park Chs 6Th Floor, Ashar It Park Ltd., Kokani Pada B-Wing, Wagle Industrial Pokharan Road No.2 Estate, Thane(W)-400 604 Thane West-400 606 Pan/Gir No.Aafpf7705G (Appellant) .. (Respondent)

Section 143(3)Section 147

…rd party. The Ld.CIT(A), after considering relevant submission of the assessee and also, on analysis of information collected during the course of search and also by following the decision of Hon’ble Gujarat High Court, in the case of CIT vs. Simith P. Sheth (356 ITR 451) scaled down addition to 25% profit on alleged bogus purchases. The relevant findings of the Ld.CIT(A) are as under:- 7. I have carefully considered the appellant's submissions, observations of the AO in the assessment order and the facts of the case The appellant had shown purchases amounting to Rs. 5,17,512 from various parties which appeared…

Ritesh Rajmal, Mumbai vs. ITO - WD- 19(3)(1), Mumbai

In the result, appeal of the assessee is partly allowed

ITA 5431/MUM/2018[2009-10]Status: DisposedITAT Mumbai14 Oct 2019AY 2009-10

Bench: Shri Mahavir Singh & Shri G. Manjunathaa.Y : 2009-10 :

For Appellant: Shri Vimal PunamiyaFor Respondent: Shri Akhtar H. Ansari

Section 143(3)

…12.5% and made addition of Rs.11,22,672/-. Aggrieved, assessee preferred appeal before the CIT(A). The CIT(A) restricted the profit rate to 10% by observing in Para 6.8 and 6.9 as under: - “6.8 Hon'ble Gujarat High Court in the case of CIT vs Simit P. Sheth 356 ITR 451 (Guj), upheld the decision of ITAT, which confirmed the addition @ 12.5% of the total bogus purchase. Taking into account the facts of the case, the Hon'ble Gujarat High Court held that since the purchases were not bogus, but were made from parties other than those mentioned in books of accounts, only the profit element embedded in such purchases…

Delux Steel, Mumbai vs. ITO 19 (1)(4), Mumbai

In the result, appeal of the assessee is partly allowed

ITA 5430/MUM/2018[2010-11]Status: DisposedITAT Mumbai14 Oct 2019AY 2010-11

Bench: Shri Mahavir Singh & Shri G. Manjunathaa.Y : 2010-11 :

For Appellant: Shri Vimal PunamiyaFor Respondent: Shri Akhtar H. Ansari

Section 143(3)

…t 12.5% and made addition of Rs.7,08,101/-. Aggrieved, assessee preferred appeal before the CIT(A). The CIT(A) restricted the profit rate to 10% by observing in para 8.10 and 8.11 as under :- “8.10 Hon'ble Gujarat High Court in the case of CIT vs Simit Sheth 356 ITR 451 (Guj) found that some of the alleged suppliers of steel to the assessee had not supplied any goods but had only provided sale bills and hence, purchases from the said parties were held to be bogus. The AO in that case added the entire amount of purchase to gross profit of the assessee. Ld. CIT(A) having found that the assessee had indeed purchase…

ITO -WD- 2(1), Thane vs. Arvind Ramgopal Saraf, Bhayander

In the result, appeal of the Revenue is dismissed

ITA 5429/MUM/2018[2009-10]Status: DisposedITAT Mumbai14 Oct 2019AY 2009-10

Bench: Shri Mahavir Singh & Shri G. Manjunathaa.Y : 2009-10 :

For Appellant: Shri Akhtar H. AnsariFor Respondent: Shri Radhakant Saraf

Section 133(6)Section 143(3)

…and there is no material to dislodge such findings. In this process the appellant saved on the sales-tax/VAT and enhanced his profit by manipulating the purchases. On similar facts Sanjay Oil Mills 316 ITR 274 and Bhole Nath Poly Fab (P) Ltd., Smith P. Sheth 356 ITR 451, Gujarat, the courts have restricted addition of percentage basis. The appellant authorities have also stressed upon the reasonability of the profit shown by the purchaser while making any such disallowance. Keeping the GP of the assessee concern in mind and the facts of the case, it would be appropriate if the addition is restricted to 12.5% of…