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TMI Blog2020 (3) TMI 1387X X X X Extracts X X X X X X X X Extracts X X X X ..... re purchases cannot be treated as non-genuine - HELD THAT:- Hon ble Gujarat High Court in the case of Bholanath Polyfab Pvt. Ltd [ 2013 (10) TMI 933 - GUJARAT HIGH COURT] held that when the assessee made purchases and sold the finished goods as a natural corollary not the entire amount covered under such purchases would be subject to tax but only the profit element embedded therein. Similar view h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rect the Assessing Officer to restrict the disallowance of purchases to 4% and compute the income accordingly. Appeal of the assessee is partly allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... has availed accommodation entries from various dealers without purchase of any materials from them. In the course of re-assessment proceedings assessee was required to prove the genuineness of the purchases made from five parties as mentioned in the Assessment Order. In response to the notice, assessee failed to produce the parties before the Assessing Officer and could not furnish the documents a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies below. It is not in dispute that sales have been accepted as genuine from out of these purchases. When the sales have been accepted as genuine the entire purchases cannot be treated as non-genuine. The Hon'ble Gujarat High Court in the case of Bholanath Polyfab Pvt. Ltd [355 ITR 290] held that when the assessee made purchases and sold the finished goods as a natural corollary not the entire am ..... X X X X Extracts X X X X X X X X Extracts X X X X
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