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TMI Blog2019 (4) TMI 1878X X X X Extracts X X X X X X X X Extracts X X X X ..... to be noted is that the assessee has reflected a Gross Profit Rate of 3.84% in the impugned AY. Keeping in view the totality of facts and circumstances, we reduce the estimated additions to 2% of alleged bogus purchases - Decided partly in favour of assessee. - ITA No.283/Mum/2019 - - - Dated:- 12-4-2019 - Shri Saktijit Dey, JM And Shri Manoj Kumar Aggarwal, AM Appellant by : Vimal Punmiya -Ld. AR Respondent by : Somnath Wajale-Ld. DR ORDER Manoj Kumar Aggarwal, 1. Aforesaid appeal by assessee for Assessment Year [AY] 2011-12 contest the order of Ld. Commissioner of Income-Tax (Appeals)-16, Mumbai, [CIT(A)], Appeal No. CIT(A)-16/ ITO-9(1)(4)/IT-10126/2016-17 dated 30/11/2018 qua confirmation of certain addit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 2.3 During the course of assessment proceedings, statutory notices were issued u/s 142(1) as well as u/s 143(2) wherein the assessee was directed to substantiate the purchase transactions with documentary evidences. In support, the assessee filed copies of sale / purchase invoices and submitted that adequate stock details were maintained and further, the payments to the suppliers were though banking channels and therefore, the purchases could not be treated as bogus purchases. However, discrepancies were found in the details submitted by the assessee. Notices sent u/s 133(6) to the suppliers elicited no satisfactory response and the same were returned back by postal authorities with remarks not known. Although the assessee defended its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arefully heard the rival submissions and perused relevant material on record including judicial pronouncements cited before us. We are of the considered opinion that there could be no sale without actual purchase of material keeping in view the fact that the assessee was engaged in trading activities. The assessee was in possession of primary purchase documents and maintained adequate stock records to reconcile the quantitative details. The payments to the suppliers were through banking channels. The books of accounts were duly audited. The sales turnover has not been disputed by the revenue. At the same time, the assessee failed to conclusively substantiate the delivery of material. Notices issued u/s 133(6) to all the suppliers did not el ..... X X X X Extracts X X X X X X X X Extracts X X X X
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