9911796707
TMI Blog2017 (9) TMI 648X X X X Extracts X X X X X X X X Extracts X X X X ..... 50%. Accordingly, the Assessing Officer is directed to recompute the addition considering the estimation of profit at 12.50% on the purchases made from the impugned parties, of course, after reducing the 5% G.P, as directed by the CIT(A). Thus, on this aspect, assessee partly succeeds. - ITA No.2983/MUM/2016 - - - Dated:- 24-8-2017 - SHRI G.S.PANNU, ACCOUNTANT MEMBER For The Appellant : Shri Ketan D. Saiya For The Respondent : Shri Suresh Kumar Rai ORDER The captioned appeal filed by the assessee pertaining to assessment year 2010-11 is directed against an order passed by CIT(A)-30, Mumbai dated 18/12/2015, which in turn, arises out of order passed by the Assessing Officer under section 143(3) r.w.s 147 of the Incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purchases but taken sales as correct and genuine. Without purchases, how sales can be made? Hence, it is not correct to take sales as genuine and purchases as bogus as both have co-relation with each other. Hence either, sales and Purchases both should be considered or deleted together. Further, Appellant would like to state that, purchases which were in dispute were sold to Government companies and the Appellant had produced the Test report of the goods. It suggests that, Sales are genuine and based on that the Purchases should be treated as genuine only. Hence, no addition is warranted. ( d) Further, it is to be noted that if the supplier has not maintained proper records and may have so admitted to be issuing bills to the sales t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Your appellant while furnishing necessary information regarding the transactions and the aforesaid parties like purchases made on the basis of copies of invoice of Purchases, Stock Statement, Bank Statement showing entries of payment through account payee cheque to suppliers (Purchase parties) and statement gave complete details with regards to opening stock, purchases, sales and closing stock thereby forming that substantial amount of sales made by appellant was to government companies and the details of statement of purchases and co-relation sales which were enclosed herewith, had discharge its primary onus, thereafter the onus shifted on the department to rebut the same. ( h) The Learned ITO had considered the sales as genuine and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e parties as bogus. 4. In this appeal, though the assessee has raised multiple Grounds of appeal, but the solitary grievance arises from the action of the Assessing Officer in treating purchases amounting to ₹ 35,28,857/- made from three parties as bogus. 5. Briefly put, the relevant facts are that the appellant assessee is an individual engaged in the business of trading in ferrous and non-ferrous metals under the proprietary concern, namely M/s. Max Steels. For the assessment year under consideration, assessee filed the return of income on 11/10/2010, declaring a total income of ₹ 9,35,156/-, which was subject to an assessment under section 143(3)(ii) of the Act dated 27/12/2012 accepting the returned income. Subsequen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to 25% had been upheld by various authorities and accordingly he estimated the profit from the purchases from parties at 17.50%. Having done so, he further noted that there was average G.P of around 5% declared by the assessee over the years and therefore, he directed the Assessing Officer to reduce the same to arrive at the net addition on account of alleged bogus purchases from the said parties. Not being satisfied with the order of the CIT(A), the assessee is in further appeal before the Tribunal. 6. Before me, arguments of the assessee primarily revolve around the estimation of profit made by the CIT(A). In this context, it has been pointed out that total purchases effected by the assessee are to the tune ₹ 9,07,15,928/-, and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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