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TMI Blog2023 (5) TMI 779X X X X Extracts X X X X X X X X Extracts X X X X ..... mate the profit element from the non-genuine purchases at 5% for both the Assessment Years i.e., A.Y. 2009-10 and A.Y. 2011-12 and restrict the disallowance of purchases to 5% and compute the income accordingly. Appeals filed by the assessee are partly allowed. - ITA NOs. 3189 And 3193/MUM/2022 - - - Dated:- 10-2-2023 - Shri Amit Shukla, Hon'ble Judicial Member And Shri S. Rifaur Rahman, Hon'ble Accountant Member For the Assessee : Shri Dhaval Shah For the Department : Ms. Mini Vinod ORDER PER S. RIFAUR RAHMAN (AM) 1. These appeals are filed by the assessee against different orders of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [hereinafter in short Ld.CIT(A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. It is the finding of the Assessing Officer that assessee failed to produce the parties and as such the parties remained unverifiable. Therefore, Assessing Officer treated ₹.24,56,579/- and ₹.2,13,304/- as non-genuine, being 12.5% of the total non-genuine purchases of ₹.1,96,52,633/- and ₹.17,06,432/- for the A.Y. 2009-10 and A.Y.2011-12 respectively. On appeal the Ld.CIT(A) sustained the action of the Assessing Officer in estimating the Gross Profit at 12.5%. Against these orders of the Ld.CIT(A) assessee is in appeal. 4. Ld. Counsel for the assessee reiterated the submissions made before the Ld.CIT(A). Ld. Counsel for the assessee further submitted that the assessee is in the business of Iron and steel and alr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Iron and Steel Metals, it would be justified if the profit element embedded in those purchases are estimated at 5%. Accordingly, we direct the Assessing Officer to estimate the profit element from the non-genuine purchases at 5% for both the Assessment Years i.e., A.Y. 2009-10 and A.Y. 2011-12 and restrict the disallowance of purchases to 5% and compute the income accordingly. 7. In the result, appeals filed by the assessee are partly allowed. Order pronounced in the open court on 10th February, 2023. - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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