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TMI Blog2023 (10) TMI 1442X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee is directed against the order passed by the NFAC dated 28.06.2023 for A.Y. 2010-11. The assessee has raised the following grounds before us: 1. That on facts and circumstances of the case and in law, adhoc estimated 12.5% disallowance made at Rs. 9,46,165/- by Id AO and upheld by ld. CIT(Appeals), out of the trading purchases of Rs. 75,69,320/- made from dealers alleged to be suspicious parties on only basis of information received from DGIT (Inv.), Mumbai that too without bringing any adverse material on record and also without properly appreciating the various supporting documentary evidences, details and also cogent explanations in support of impugned purchases furnished on record being wrong on facts and bad in law therefore m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otal 75,69,320 The assessee was engaged in the business of trading in ferrous and non-ferrous metals. During the course of assessment after considering the submission of the assessee the assessing officer treated 12.5% of total amount of Rs. 75,69,320/- which comes to Rs. 946,165/- as non-genuine purchases and added to the total income of the assessee. 3. The assessee filed the appeal before the ld. CIT(A). The ld. CIT(A) has dismissed the appeal of the assessee. 4. During the course of appellate proceedings before us at the outset the ld. Counsel submitted that similar issue on indentical facts in the case of the assessee for the assessment year 2010-11 has been adjudicated by the ITAT, Mumbai in case of Maftlal Harkchandji Bothra Vs. ITO- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .no. 3CD was enclosed and at page 52 of the paper book referred to the the quantitative details of stock of material was placed and the GP ratio @ 6.86%. Further, the Ld.AR submitted that the purchase transactions are duly supported with the details and estimating income on the said purchases is on the higher side. The Ld.AR relied on the decision of the coordinate bench of Hon ble Tribunal on the identical issue in the case of Babulal Punkhraj Sanghvi Vs. ITO, in ITA No. 2556 2557/Mum/2022 dated 19.12.2022 at Para 4 to 7 of the order read as under: 04. The only identical issue involved in both these appeals is challenging the profit estimation made on account of ingenuine purchases 05. We have heard the rival contentions and perused the ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sing Officer for A.Y. 2009-10 at 15% and for A. Y. 2010-11 at 12.5% On first appeal, the learned CIT (A) directed the learned Assessing Officer to estimate the profit percentage at 12.5% for both the years. Since, in the instant case sales made out of disputed purchases were not doubted by the Revenue, the only logical conclusion could be that assessee had made purchases in the grey market in order to have savings in indirect taxes and instantly, profit element thereon. Hence, it would be just and fair to bring to tax only the profit element embedded in the value of such disputed purchases. We find that this Tribunal has been consistently passing orders by estimating the profit percentage for assessee's engaged in iron and steel industr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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