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TMI Blog2021 (4) TMI 235X X X X Extracts X X X X X X X X Extracts X X X X ..... te of the fact that the assessee is dealing in low profit margin items which attract lower rate of tax has restricted the disallowance to 5% of the alleged non genuine purchases. Admittedly, the aforesaid decision of the Tribunal was not available before Commissioner (Appeals) when she decided the appeal for the impugned assessment year. Be that as it may, after perusing the order of the Tribunal in assessee s own case in AY 2011-12 (supra) find that the said decision has been rendered on identical facts and circumstances as involved in the present appeal. Therefore, respectfully following the decision of the coordinate Bench in assessee s own case as referred to above, direct the Assessing Officer to restrict the disallowance to 5% of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... modation bills. Therefore, he called upon the assessee to prove the genuineness of the purchases. In response to the query raised by the Assessing Officer, though, the assessee furnished some documentary evidences such as copies of ledger accounts, purchase invoices, bank statement, documentary evidence, payment made through cheque to the selling dealers, sale invoices etc, however, the Assessing Officer was not satisfied with them. Further, he observed, notice issued u/s 133(6) of the Act to the selling dealers for verifying the genuineness of purchases returned back unserved. Therefore, the Assessing Officer treated the purchases as nongenuine. However, relying upon a decision of the Hon ble Gujarat High Court in case of CIT vs. Simit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n record. As far as the facts are concerned, there is no dispute that the assessee is a trader in ferrous and non-ferrous metals. It is also a fact that the genesis of the present disallowance is the information received from sales tax department indicating that certain entities from whom assessee claimed to have purchased goods have been identified as accommodation entry providers. However, the Assessing Officer has acknowledged the fact that the assessee has effected the corresponding sales and has also offered to tax the profit on such sales. In such circumstances, only the profit element embedded in the alleged non genuine purchase can be considered for addition. It is further noted by me, in assessee s own case in assessment year 2011- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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