9911796707
TMI Blog2021 (10) TMI 258X X X X Extracts X X X X X X X X Extracts X X X X ..... from tainted parties - DR argued that the learned CIT(A) ought to have estimated the profit at the rate of 12.5% of the value of purchases which has been consistently made by this Tribunal in various other cases - HELD THAT:- Assessee is engaged in iron and steel industry and moreover, assessee is only a trader in Iron and Steel. Assessee has disclosed gross profit of 2.42% in its books which has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeals)]-32, Mumbai [in short CIT(A)], dated 27.06.2017. The assessment was framed by the Income Tax Officer, Ward 20(1)(2) (in short ITO/ AO) for the A.Y. 2011-12 vide order dated 09.03.2016 under section 143(3) read with section 147 of the Income-tax Act, 1961 (hereinafter 'the Act'). 2. The effective issue to be decided in this appeal of the Revenue is as to whether the learned CIT(A) was just ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The learned Assessing Officer issued notices under section 133(6) of the Act to all the parties, which were duly served but no replies were received from the said parties in response thereon. The learned Assessing Officer directed the assessee to produce the aforesaid parties, which was also not complied with by the assessee. Accordingly, the learned Assessing Officer proceeded to treat 100% of ou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ame had not been written back to the income by the assessee. Effectively, the learned CIT(A) held that the parties from whom credit purchases have been made are genuine and accordingly deleted the addition made in the sum of ₹ 25,44,256/-. 5. With respect to the remaining purchases to the tune of ₹ 1,49,71,795/- made from other parties who were treated as tainted dealers, the learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot in dispute that sales made out of the purchases of ₹ 1,75,16,051/- from seven parties has not been doubted by the Revenue. For the purpose of determining the profit element embedded in the value of such purchases, taking into consideration the industry in which the assessee is dealing with, we deem it fit appropriate to estimate the profit at 5% of the value of such purchases as income of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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