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Income Turnover 2008 2007 2006 2005 2004 Sales 81,470,952 103,613,890 44,470,801 64,956,690 65,574,370 Income/ 39,201,816 1,667,781 25,923,445 13,613,129 72,276,896 Decreases in Stock Gross Profit Turnover . Bogus purchases allowed 52.20% 48.48% 51.94% 35.52% 40.98% As expenses Net Profit/Turnover Bogus purchases allowed 5.36% 5.83% 4.27% 3.90% 9.85% expenses The learned Counsel for the assessee fairly agreed that a reasonable estimate of profit should be estimated in view of the fact that neither manufacturing of moulds nor sale of moulds is under dispute. According to us, assessee had made purchase but from grey market. We find that the similar finding were given by the CIT(A) that assessee might have purchased extra profit on account of saving of sales tax and other tax. Even by purchasing from grey market, assessee might have save some profits and profit of the assessee has depicted in the above chart which is minimum at the rate of 3.90% and maximum of 9.85%. We are of the view that a reasonable estimate on profit rate at 10% will suffice the issue. Accordingly, we direct the AO to estimate the profit rate @ 10% on the above purchases and appeal of the assessee is partly allowed and that of the Revenue is dismissed.