9911796707
TMI Blog2020 (11) TMI 404X X X X Extracts X X X X X X X X Extracts X X X X ..... .e. trader in iron and steel, it would be justified if the profit element embedded in those purchases are estimated at 4%. Accordingly, we direct the Assessing Officer to estimate the profit element from the non-genuine purchases at 4% and restrict the disallowance of purchases to 4% and compute the income accordingly. - ITA NO. 1148/MUM/2019 (A.Y: 2009-10) - - - Dated:- 29-9-2020 - SHRI C.N. PRASAD, HON'BLE JUDICIAL MEMBER AND SHRI RAJESH KUMAR, HON'BLE ACCOUNTANT MEMBER Assessee by: Shri Akash Kumar Department by: Shri R. Bhoopathi ORDER PER C.N. PRASAD (JM) 1. This appeal is filed by the assessee against the order of the Learned Commissioner of Income Tax (Appeals) 7, Mumbai [hereinafter in short ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct and subsequently reopened by issue of notice on 11.02.2014 u/s. 148 of the Act based on the information received from the DGIT (Inv) Mumbai, stating that assessee has availed accommodation entries from various dealers without purchase of any materials from them. In the course of re-assessment proceedings assessee was required to prove the genuineness of the purchases made from five parties as mentioned in the Assessment Order. In response to the notice, assessee furnished ledger account and cheque payments and submitted that the purchases made from the parties are genuine. Assessing Officer treated the purchases as non-genuine and he was of the opinion that assessee had obtained only accommodation entries without there being any transpor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rities that there should be an estimation of profit element from these purchases and should be estimated reasonably as the assessee could not conclusively prove that the purchases made are from the parties as claimed, especially in the absence of any confirmations from them. Taking the totality of facts and circumstances, keeping in view the nature of business of the assessee i.e. trader in iron and steel, it would be justified if the profit element embedded in those purchases are estimated at 4%. Accordingly, we direct the Assessing Officer to estimate the profit element from the non-genuine purchases at 4% and restrict the disallowance of purchases to 4% and compute the income accordingly. 6. In the result, appeal of the assessee is pa ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
