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TMI Blog2017 (5) TMI 901X X X X Extracts X X X X X X X X Extracts X X X X ..... - Dated:- 30-3-2017 - Shri Saktijit Dey (Judicial Member) And Shri N. K. Pradhan (Accountant Member) Assessee by : Shri Bhupendra Shah, AR Revenue by: Shri Purushottam Kumar, DR ORDER Per N. K. Pradhan, AM This is an appeal filed by the assessee. The relevant assessment year is 2009-10. The appeal is directed against the order of the Commissioner (Appeals) 5, Mumbai and arises out of order u/s 143(3) r.w.s 147 of the Income Tax Act 1961(the Act ). 2. The grounds of appeal filed by the assessee read as under:- a. On the facts and in the circumstances of the case, the Learned Commissioner of Income Tax (Appeals) has erred in law in confirming the addition @ 12.50% ₹ 3,20,927/- on the purchases of ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... M/s. Sun Enterprises ₹ 2,11,640/- 6 M/s. Bhumi Enterprise ₹ 3,85,632/- 7 M/s. Liberty Traders ₹ 4,17,508/- 8 M/s. Meridian Sales Agency ₹ 1,85,085/- Total ₹ 26,78,795/- The AO found that the TIN provided by the assessee in the above mentioned cases was exactly the same as appearing in the information available. In response to the notice u/s 142(1) along with questionnaire dated 04.12.2014 issued by the AO, the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gus purchases were involved and following the judgement of the Hon'ble Gujrat High Court in the case of CIT vs. Simit P. Seth 356 ITR 451 (Guj) directed the AO to estimate profit @12.5% on purchases of ₹ 25,67,420/- and make an addition of ₹ 3,20,927/-. 5. Before us, the learned counsel of the assessee submits that the alleged purchases of ₹ 26,78,795/- includes ₹ 11,47,500/- towards purchase of machinery. He filed details of purchases from the above eight suppliers. It is submitted by him that the parties concerned were proper traders in the markets, who have delivered the goods to the assessee. These parties were registered with Sales Tax Department. These parties may have avoided payment of VAT. It is submi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not in a position to make any verification (ii) the assessee also failed to file before the AO the transport receipt and (iii) the assessee company was not keeping day-to-day stock register for raw materials, finished goods, manufacturing account . The auditor has also certified that as the company has not maintained any stock record, it is not possible to give quantitative details. 7.1 The learned counsel of the assessee has placed reliance on the order of the ITAT as mentioned at para 5 here-in-above. However, we have the benefit of having the judgement of the Hon'ble Gujarat High Court in Simit P. Sheth (supra) on similar issues. In that case, the assessee was engaged in business of trading in steel on wholesale business. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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