9911796707
TMI Blog2021 (12) TMI 52X X X X Extracts X X X X X X X X Extracts X X X X ..... t assessee derives by making purchases out of cash in the grey market should be ultimately brought to tax. As relying on M/S. MAX REALITIES LLP [ 2021 (8) TMI 861 - ITAT MUMBAI] we direct the ld. AO to add only 1% of value of ingenuine purchases - Appeal of the assessee is partly allowed. - ITA No.1783/Mum/2020 - - - Dated:- 8-10-2021 - Shri Saktijit Dey, Judicial Member And Shri M.Balaganesh, Accountant Member For the Assessee : Shri Hiro Rai For the Revenue : Shri Pankaj Kumar ORDER PER M. BALAGANESH (A.M): This appeal in ITA No.1783/Mum/2020 for A.Y.2008-09 arises out of the order by the ld. Commissioner of Income Tax (Appeals)-20, Mumbai in appeal No.CIT(A)-20/IT-10179/2016-17 dated 27/09/201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 55,40,211 4. Mohit International 1,78,76,929 5. Natasha Enterprises 2,83,50,977 Total 5,67,01,954 3.1. The ld. AO observed that section 133(6) notices issued to the aforesaid parties in the addresses given by the assessee were returned unserved. The ld. AO pointed out various deficiencies in various documentary evidences submitted by the assessee in connection with the purchases. Ultimately, the ld. AO observed that the concerns from which assessee has made purchases belong to Shri Pravin Kumar Jain who was known to be an en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stating that the suppliers were not produced by the assessee before the ld. AO and notices u/s.133(6) of the Act were returned unserved. Hence, the assessee has not discharged its onus at all to prove the veracity of the purchases. 3.4. We find that there is no dispute that assessee is trading in fabrics and that the purchases made from the aforesaid five suppliers were in respect of purchases of fabrics. It is not in dispute that the sales made out of purchases made from aforesaid five suppliers were not doubted by the Revenue. It is not in dispute that purchase of fabrics does not get eligible for levy of VAT. Hence, the profit element to be estimated on the value of ingenuine purchases should certainly exclude the VAT portion in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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