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TMI Blog2025 (1) TMI 1493X X X X Extracts X X X X X X X X Extracts X X X X ..... d u/s 143(3) of the Income-tax Act, 1961 (hereinafter referred to as 'the Act') dated 30.12.2017 by the Assessing Officer, JCIT, Special Range- 11, New Delhi (hereinafter referred to as 'ld. AO'). 2. The assessee had raised additional grounds stating that the assessment is time barred. But at the time of hearing, the learned AR before us submitted that on verification and inspection of the records from the file of the revenue, the learned assessing officer had referred the matter to UAE tax authorities through Foreign Tax and Tax Research Division of CBDT for seeking certain information. On perusal of the same, the assessee was convinced that the learned assessing officer had an extended time limit to frame the assessment within the provis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disturbed by the learned AO and the books were not rejected by the learned AO. 5. During the course of assessment proceedings, the Learned AO sought to examine the veracity of purchases made by the assessee from various parties. The details for the same were sought for from the assessee by the Learned AO which were duly furnished. The Learned AO found that out of 111 suppliers list furnished by the assessee, the Learned AO selected 58 suppliers thereon and issued notice under section 133(6) of the Act to each of those 58 suppliers seeking for certain information. Out of that, 36 suppliers responded directly before the Learned AO by furnishing the requisite information in response to notice under section 133(6) of the Act. 22 suppliers did ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 22 suppliers have been duly brought in as goods inward and the corresponding sales made thereon have been duly reduced from the available stock in the stock registers. The Learned AO had merely sought to make some observations with regard to the fact of assessee's family member being involved in fraudulent claim of enhanced claim of duty drawback by inflating the price of sales. Though the Learned AO had made certain observations regarding this, ultimately in the final determination of total income and computation of tax liability, the Learned AO had not drawn any adverse inference with regard to the said observation and merely disallowed the value of purchases made from these 22 suppliers who did not respond to the notice issued under sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ttention to Page No. 803 of the paper book part 3 containing the gross profit chart from assessment year 2004-05 onwards. On perusal of the said chart, we find that the average of last 3 years gross profit rate worked out to 1.55 percent and during the year under consideration, the assessee had earned gross profit of 1.6 percent. The Learned AR also submitted that in most of the earlier years, the assessments were completed under section 143(3) of the Act in the case of the assessee and no adverse inference was drawn thereon. But the case involved herein is a case of unverifiable purchases where the profit margin would be slightly higher as purchases had been made in the grey market. Accordingly, we deem it fit and appropriate to estimate t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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