Assessee is  engaged in business of trading and manufacturing of diamonds. Assessee made purchases from certain tainted dealers Assessing Officer held  that assessee made purchases from grey market to save indirect taxes and, thus, incidental profit element which was embedded in value of said purchases was to be brought to tax. He estimated profit element embedded in value of disputed purchases at 5 per cent.  Commissioner (Appeals) reduced same to 3 per cent. Held that  report of Task Force for Diamond Sector constituted by Ministry of Commerce and Industry recommended that net profit prevailing in diamond industry engaged in business of trading would be in range of 1 per cent to 3 per cent and those engaged in business of manufacturing would be in range of 1.5 per cent to 4.5 per cent. Since Tribunal had consistently taken stand by estimating profit element on basis of reliance placed on report of Task Force, Commissioner (Appeals) was duly justified in estimating profit percentage of 3 per cent.  (AY. 2010-11, 2011-12,2013-14)