9911796707
TMI Blog2023 (1) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... ire purchase cannot be disallowed but the disallowance can be restricted to the profit element embedded in such purchases. In fact, adopting this approach in some other assessment years the AO in assessee s own case has restricted the disallowance to 5% in respect of purchases made from very same parties. The same yard-stick can be applied in the impugned assessment year as well. Therefore, direct the AO to restrict the disallowance to 5% of the total purchases - These grounds are partly allowed. - I.T.A No. 8401/Del/2019 - - - Dated:- 29-11-2022 - Shri Saktijit Dey, Judicial Member, S. M. C. For the Assessee : Dr. Rakesh Gupta, Advocate, And Shri Saksham Agarwal, C. A.; For the Department : Shri Toufel Tahir, Sr. D. R.; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 83,821/- u/s 69C on account of purchases made from parties mentioned in the reassessment order and that too by recording incorrect facts and findings and without granting opportunity of cross examination and without providing the entire adverse material on records and without observing the principles of natural justice and disregarding the submissions, evidence and material placed on record by the assessee; 4. That in any case and in any view of the matter, action of Ld. CIT(A) in confirming the action of Ld. AO in making aggregate addition of Rs.41,83,821/- u/s 69C, is bad in law and against the facts and circumstances of the case; 5. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of purchases made from some of the very same parties, the Assessing Officer had adopted profit rate of 5% and restricted the disallowance to that extent. He submitted, adopting similar approach disallowance can be restricted to 5% in the present case also. 6. The learned Departmental Representative relied upon the observations of the Assessing Officer and learned CIT (Appeals). 7. I have considered rival contentions and perused the material on record. Undisputedly, the Assessing Officer has treated the purchases from certain parties as non-genuine and added back the entire amount to the income of the assessee. However, it appears on record that before the Assessing Officer the assessee has furnished the details of sales quantitative ..... X X X X Extracts X X X X X X X X Extracts X X X X
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