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TMI Blog2020 (3) TMI 1258X X X X Extracts X X X X X X X X Extracts X X X X ..... That being the case, no justification in not applying the profit rate of 12.5% in respect of the purchases as was done in case of balance purchases. Accordingly, direct the Assessing Officer to disallow 12.5% out of the purchases - Decided partly in favour of assessee. - ITA no. 5556/Mum./2018 - - - Dated:- 13-3-2020 - SHRI SAKTIJIT DEY, JUDICIAL MEMBER For the Assessee : None For the Revenue : Ms. R. Kavitha ORDER This appeal has been filed by the assessee against the order dated 20th June 2018, passed by the learned Commissioner of Income Tax (Appeals) 42, Mumbai, for the assessment year 2010 11. 2. The dispute in the present appeal is confined to the disallowance of ₹ 5,22,057, made on account of non genui ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting to ₹ 13,31,855 claimed to have been made during the year from five entities. Further, to independently verify the genuineness of purchases, the Assessing Officer issued notices under section 133(6) of the Act to the selling dealers. However, as alleged by the Assessing Officer, all such notices returned back un served due to unavailability of the entities in the given address. Further, on verifying the evidences furnished by the assessee, the Assessing Officer was not convinced regarding the genuineness of the purchases claimed to have been made. The Assessing Officer observed, the assessee failed to furnish not only whereabout of the parties, but also failed to produce them. Further, delivery challan, lorry receipt, octroi recei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wo parties. Having gone through the assessment order as well as the order of learned Commissioner (Appeals), I find that the only reason the Assessing Officer did not apply the profit rate @ 12.5% to the purchases of ₹ 5,22,057, made from two parties is, the assessee was unable to furnish the Bank statement reflecting the payments made towards the purchases. However, it is a fact on record that the Assessing Officer has not disputed the sales effected by the assessee. That being the case, I do not find any justification in not applying the profit rate of 12.5% in respect of the purchases of ₹ 5,22,057, as was done in case of balance purchases. Accordingly, I direct the Assessing Officer to disallow 12.5% out of the purchases of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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