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TMI Blog2021 (10) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... grey market. We concur with the view taken by the CIT(A) that the addition in the hands of the assessee was liable to be restricted only to the extent of the profit element embedded in the impugned purchases in question. Also, we subscribe to the quantification of the said profit element by the CIT(A) at 12.5% of the aggregate value of the impugned purchases. - Decided against revenue. - ITA No. 6273/MUM/2019 (Assessment Year: 2010-11) - - - Dated:- 7-4-2021 - SHRI MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) AND SHRI RAVISH SOOD (JUDICIAL MEMBER) Assessee by : None Revenue by : Shri Sumit Kumar, D.R ORDER PER RAVISH SOOD, J.M: The present appeal filed by the revenue is directed against the order passed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. Briefly stated, the assessee firm which is engaged in the business of dealing in supplying window, split air-conditioners water coolers etc. had filed its return of income for A.Y. 2010-11 on 30.10.2010, declaring a total income of ₹ 10,45,792/-. The return of income filed by the assessee was processed as such under Sec. 143(1) of the Act. Subsequently, on the basis of information received from the Sales Tax Department, Maharashtra that the assessee has obtained bogus purchase bills from certain hawala parties its case was reopened under Sec. 147 of the Act. 3. In the course of the assessment proceedings it was observed by the A.O that the assessee during the year in question had claimed to have made purchases from certain par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ks of accounts; copies of the purchase bills; and copy of the bank statements evidencing the fact that the payments to the aforesaid parties were made through banking channels. In order to verify the authenticity of the purchase transactions the A.O directed the assessee to produce the aforementioned parties. However, the assessee failed to comply with the aforesaid direction of the A.O and expressed its inability to produce the aforementioned parties. After perusing the documents which were placed on record by the assessee to support the authenticity of the impugned purchase transactions, the A.O was of the view that in the absence of supporting documentary evidence viz. goods receipt notes; goods inspection notes; godown receipts; toll ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atter in appeal before us. The assessee respondent despite having been put to notice about the date of hearing of the appeal had however failed to appear before us. Accordingly, we are herein constrained to proceed with the hearing of the appeal as per Rule 25 of the Appellate Tribunal Rules, 1963, and therein dispose off the appeal after hearing the appellant revenue and perusing the orders of the lower authorities. 6. As is discernible from the records, it is a matter of fact born from the records that the assessee had failed to substantiate the authenticity of the impugned purchases claimed to have been made from the aforementioned parties on the basis of clinching documentary evidence to the satisfaction of the A.O. Apart from that, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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