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Smt Meenu Jain M/s Gautam International 85, Old Housing Board Colony Panipat, Haryana Vs. The I.T.O Ward - 2 Panipat
March, 18th 2020
                                  1


 IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI `SMC-2' BENCH,
                         NEW DELHI

        BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER


                      ITA No. 2859/DEL/2019
                    [Assessment Year: 2010-11]

Smt Meenu Jain                        Vs.               The I.T.O
M/s Gautam International                                Ward - 2
85, Old Housing Board Colony                            Panipat
Panipat, Haryana

PAN: AFCPJ 3258 A

 [Appellant]                                          [Respondent]


                Date of Hearing             : 17.03.2020
                Date of Pronouncement       : 17.03.2020

                    Assessee by : Shri Puneet Rai, Adv

                     Revenue by : Shri Gaurav Dudeja, Sr. DR


                               ORDER


PER N.K. BILLAIYA, ACCOUNTANT MEMBER:




     This appeal by the assessee is preferred against the order of the

Commissioner of Income Tax [Appeals], Karnal dated 23.01.2019

pertaining to assessment year 2010-11.
                                  2


2.   The sum and substance of the grievance of the assessee

is that the ld. CIT(A) erred in upholding the addition of Rs.

11.10 crores on account of purchases made from M/s Ganpati

Enterprises. The assessee has also challenged the reopening

of the assessment.








3.   At the very outset, the ld. counsel for the assessee

stated that he is not pressing the grounds challenging the

reopening of the assessment and hence the same is dismissed

as not pressed.




4.    Facts on record show that on the basis of information received

from the office of the DDIT, INV, Panipat, the Assessing Officer came

to know that there are some bogus firms in Panipat who do not

purchase anything and who do not deposit any VAT. One of such firms

was M/s Ganpati Enterprises.          The Assessing Officer found

that the assessee has made purchases from M/s Ganpati

Enterprises amounting to Rs. 11,10,818/-.            The Assessing

Officer treated the same as bogus purchases and made the

addition.
                               3


5.   The assessee carried the matter before the ld. CIT(A)

but without any success.




6.   Before me, the ld. counsel for the assessee drew my

attention to the order of the first appellate authority for A.Y

2011-12 and pointed out that the very same first appellate

authority has made the addition by estimating the profit @

8% on bogus purchases.      The ld. counsel for the assessee

further drew my attention to the order of the same first

appellate authority in the case of Sanjay Goyal wherein

purchases from the same party i.e. M/s Ganpati Enterprises,

were treated as bogus and addition has been estimated @

10%. It is the say of the ld. counsel for the assessee that on

identical facts, the same first appellate authority has taken

divergent views.









7.   I have carefully perused the order of the authorities

below and the order of the first appellate authority referred

to hereinabove.    I find force in the contention of the ld.

counsel for the assessee.
                                   4


8.    On identical set of facts and on identical purchases

which were treated as bogus, the first appellate authority

has estimated the addition @ 8% and 10% on bogus purchases

which means that the entire purchases have not been added

but only the profit margin has been added.        In this view of

the matter, I deem it fit to estimate the profit @ 9% for the

year under consideration. I accordingly, direct the Assessing

Officer to add 9% of the bogus purchases as income of the

assessee.




9.    In the result, the appeal filed by the assessee in ITA No.

2859/DEL/2019 is partly allowed.


      The order is pronounced in the open court on 17.03.2020.



                                                    Sd/-/-

                                             [N.K. BILLAIYA]
                                         ACCOUNTANT MEMBER
Dated: 17th March, 2020.

VL/
                                5




Copy forwarded to:

1.   Appellant
2.   Respondent
3.   CIT
4.   CIT(A)                                      Asst. Registrar,
5.   DR                                          ITAT, New Delhi


Date of dictation

Date on which the typed draft is placed before
the dictating Member
Date on which the typed draft is placed before
the Other Member
Date on which the approved draft comes to
the Sr.PS/PS
Date on which the fair order is placed before
the Dictating Member for pronouncement
Date on which the fair order comes back to
the Sr.PS/PS
Date on which the final order is uploaded on
the website of ITAT
Date on which the file goes to the Bench Clerk
Date on which the file goes to the Head Clerk

The date on which the file goes to the
Assistant Registrar for signature on the order
Date of dispatch of the Order

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