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TMI Blog2019 (11) TMI 323X X X X Extracts X X X X X X X X Extracts X X X X ..... may not have purchased the goods from the declared source but has purchased them from third parties and for regularizing such purchases has obtained accommodation bills. In such circumstances, the entire purchases made by the assessee cannot be disallowed and added back to the income of the assessee. It would be reasonable to estimate the profit element embedded in such purchases and consider it for addition. Addition @ 12.5% of the non genuine purchases would be reasonable. Accordingly, direct the Assessing Officer to restrict the addition to 12.5% of ₹ 11,66,082. Assessee s appeal is partly allowed. - ITA no.6085/Mum./2018 - - - Dated:- 18-9-2019 - Shri Saktijit Dey, Judicial Member For the Assessee : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gs, the Assessing Officer called upon the assessee to prove the genuineness of purchases made by furnishing corroborating evidences. Further, to verify the genuineness of such purchases, the Assessing Officer conducted independent enquiry by issuing notices under section 133(6) of the Act to the concerned parties. However, as alleged by the Assessing Officer, all such notices returned back un served by the postal authority. Further, attempt made by the Assessing Officer to ascertain the whereabouts of the concerned parties through Ward Inspector also proved futile. It is observed by the Assessing Officer that except furnishing the Profit Loss Account, Balance Sheet, party wise details of purchase and sale, details of sundry creditors / de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee s claim of purchases made being genuine cannot be accepted. However, the fact that the assessee had furnished quantitative details relating to purchase, consumption and sale of goods cannot be completely overlooked. Thus, a reasonable presumption can be drawn that the assessee may not have purchased the goods from the declared source but has purchased them from third parties and for regularizing such purchases has obtained accommodation bills. In such circumstances, the entire purchases made by the assessee cannot be disallowed and added back to the income of the assessee. Rather, it would be reasonable to estimate the profit element embedded in such purchases and consider it for addition. In the peculiar facts and circumstances of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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