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TMI Blog2021 (5) TMI 375X X X X Extracts X X X X X X X X Extracts X X X X ..... al. - I.T.A. Nos.5145 & 5146/2019 - - - Dated:- 11-3-2021 - Shri Saktijit Dey (Judicial Member) And Shri N.K. Pradhan (Accountant Member) For the Appellant : Ms. Asifa Khan, AR For the Respondent : Shri Sanjay Sethi, DR ORDER PER SAKTIJIT DEY (JM) Captioned appeals by the same assessee arise out of two separate orders, both dated 29-05-2019, of learned Commissioner of Income-tax (Appeals)-4, Mumbai, for the assessment years 2010-11 and 2011-12. 2. The common dispute in these appeals basically relate to additions made on account of non genuine purchases. 3. Briefly the facts, more or less common in these appeals are, the assessee, an individual, is engaged in the business of trading in ferrous and non fe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ditions before learned Commissioner (Appeals), however, they were confirmed. 4. The learned Counsel for the assessee submitted, in Assessment Year 2010-11, the assessee has shown gross profit rate of 4.97% and has also paid VAT at 4%. Whereas, in Assessment Year 2011-12, the assessee has shown gross profit rate of 12.69% and paid VAT at 4%. Thus, she submitted, considering the gross profit shown by the assessee and the fact that VAT has also been paid, no further disallowance on account of suppression of profit should have been made. She submitted, the assessee has produced purchase bills, bank statements showing payment, quantitative details, etc. to prove the genuineness of purchases. She submitted, purely relying upon the information ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oncerned selling dealers returned back unserved, thereby, making the source of purchases unverifiable. Therefore, assessee s claim that the purchases were made from the declared source remained unproved. At the same time, the assessing officer has not disputed that the assessee has effected the corresponding sales, meaning thereby, the disputed goods, in fact, were purchased by the assessee from unverified sources. Therefore, instead of disallowing the entire purchases, the assessing officer has restricted the disallowance to the profit element embedded in such purchases by estimating the same at 12.5%. Now, the issue which arises for consideration is whether the disallowance made at 12.5% is fair and reasonable. Considering the fact tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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