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TMI Blog2021 (12) TMI 400X X X X Extracts X X X X X X X X Extracts X X X X ..... s, keeping in view the nature of business of the assessee i.e. trader in Bright Steel Bars and Wire rods, it would be justified if the profit element embedded in those purchases are estimated at 12.5% - Appeal of the assessee is partly allowed. - ITA NO. 6980/MUM/2019 - - - Dated:- 10-11-2021 - SHRI C.N. PRASAD, HON'BLE JUDICIAL MEMBER Assessee by : None Department by : Ms. Kranti Yadav ORDER PER C.N. PRASAD (JM) 1. This appeal is filed by the assessee against order of the Learned Commissioner of Income Tax (Appeals) 30, Mumbai [hereinafter in short Ld.CIT(A) ] dated 05.08.2019 for the A.Y. 2010-11 in enhancing the purchases to the extent of 100% of Rs..29,29,259/- as against Rs..10,08,634/- of the alleged non ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the notices issued u/s.133(6) of the Act to the parties are returned unserved with a remark left and the assessee has not produced the parties before the Assessing Officer. It is the finding of the Assessing Officer that assessee failed to produce the parties and as such the purchases to the extent made from the parties are remained unverifiable. Therefore, Assessing Officer treated purchases of Rs..10,08,634/- as non-genuine being peak amount of the total purchases claimed by the assessee. On appeal however, the Ld.CIT(A) enhanced the disallowance to 100% of purchases of Rs..29,29,259/- made from M/s. Geeta Bright relying on the decision of the Hon'ble Bombay High Court in the case of Shoreline Hotel Pvt. Ltd., [98 taxmann.com 23 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disallowance made under non-genuine purchases and the observation of the Tribunal is as under: - 7. Upon assessee's appeal learned CIT(appeals) has enhanced the addition to hundred percent. In doing so she has referred to the honourable jurisdictional High Court decision in the case of Shoreline Hotels Pvt. Ltd.(supra). It is settled law that case law cannot be considered in isolation of the context thereof. This is duly the ratio arising of out of the decision of honourable Supreme Court in the case of Sun Engineering Works Pvt. Ltd. (198 ITR 2970. In the decision of Shorteline Hotels Pvt. Ltd. (supra) considered by the Hon'ble Bombay High Court was in context of the order passed by learned CIT(A) under section 263 of the inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Simply because the parties were not produced the entire purchases cannot be added as held by the Bombay High Court in the case of CIT v. Nikunj Eximp [216 Taxman.com 171]. 9. I agree with the view of the lower authorities that there should be an estimation of profit element from these purchases and should be estimated reasonably as the assessee could not conclusively prove that the purchases made are from the parties as claimed, especially in the absence of any confirmations from them. Taking the totality of facts and circumstances, keeping in view the nature of business of the assessee i.e. trader in Bright Steel Bars and Wire rods, it would be justified if the profit element embedded in those purchases are estimated at 12.5%. Accordi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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