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TMI Blog2021 (6) TMI 971X X X X Extracts X X X X X X X X Extracts X X X X ..... e is fair and reasonable - Decided against revenue. - ITA No. 6876/Mum./2019 - - - Dated:- 10-6-2021 - S. Rifaur Rahman, Member (A) And Pavan Kumar Gadale, Member (J) For the Appellant : T. S. Khalsa For the Respondents : P.P. Jayaraman ORDER S. Rifaur Rahman, Member (A) The captioned appeal has been filed by the Revenue challenging the impugned order dated 23rd August 2019, passed by the learned Commissioner (Appeals)-2, Nashik, for the assessment year 2011-12. 2. The grounds of appeal raised by the Revenue are as reproduced below:- 1. On the facts and in the circumstances of the case, and in law, the Ld. CIT(A) has erred in not appreciating the fact that the assessee could not establish the genuineness of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nded vide letter dtd. 20.08.2018 as per para 10(e) of the said circular. Therefore, the order of the CIT(A) may kindly be vacated and that of the AO may be restored. 3. Facts in brief:- In the present case, the assessee is a firm engaged in the business of designing, purification, conservation, audit and supply, erection and maintenance of water treatment plant. For the year under consideration, the assessee filed its return of income on 9th September 2011, declaring total income of ₹ 1,09,78,070. Subsequently, information has been received from the Sales Tax Department that the assessee has claimed expenses towards purchase during the financial year 2010-11 from M/s. Harish Metal Tubes of ₹ 32,80,369 and from M/s. Triveni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9. 5. Considered the rival submissions and perused the material on record. We find that though, the assessee may not have been able to prove the genuineness of purchases from the declared source, however, it is a fact on record that the Assessing Officer has not disputed the sales effected by the assessee. Therefore, it goes to prove that the assessee must have purchased goods from some other undisclosed source or from grey market. In such circumstances, it is the settled legal position that the entire purchases cannot be disallowed, but only the profit element embedded in such purchases can be considered for addition. Therefore, keeping in view the decisions of the Tribunal in identical nature of cases, the decision of learned Commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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