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TMI Blog2021 (10) TMI 1437X X X X Extracts X X X X X X X X Extracts X X X X ..... ls and for this business, the profit rate applied by the AO i.e. 12.5%, is not reasonable. Going by the nature of the business of the assessee, estimate profit rate of 5% and direct the AO accordingly. X X X X Extracts X X X X X X X X Extracts X X X X ..... referred appeal before the CIT(A). The CIT(A) confirmed the action of the Assessing Officer by observing in paragraphs 4.3 and 4.3.1 as under :- "4.3 The submissions and case laws relied upon by the ld. Counsel for the appellant are carefully considered. When the expenditure has been claimed by the assessee, the onus is on the assessee to prove the genuineness of the same. As it is the claim of the assessee that it has made purchases from the said parties, the AO had requested the assessee to produce the parties for verification. However, the assessee failed to do so. 4.3.1 Coming to the addition made, the Hon'ble ITAT, Ahmedabad 'C' Bench in the case of Vijay Proteins Ltd. vs ACIT 58 ITD 0428 held that in similar circumstances, 25% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has obtained bogus bills from these parties, but the assessee has also produced the following :- i) Copies of purchase bills of all the specific parties and their respective sales invoices. ii) Copies of ledger account and bank statements evidencing that payment was made through proper banking channel. iii) Chart showing details of purchases from alleged parties and quantitative tally with corresponding sales. It is also a fact that the assessee has filed bank statement highlighting payment made to parties through account payee cheques, but could not produce the parties for examination. The assessee is able to discharge the primary onus of proving the purchases as genuine, but could not produce the parties for examination nor the de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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