Tribunal upholds disallowances for non-genuine purchases in multiple assessment years

The Tribunal upheld the Commissioner's decision to confirm disallowances and additions made by the assessing officer for alleged non-genuine purchases in multiple assessment years. Despite the assessee's submission of documentary evidence, the assessing officer and Commissioner remained unconvinced, leading to the dismissal of appeals due to profit element estimations. The Tribunal found the decision consistent with previous cases and upheld the disallowances based on available evidence and legal principles.

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Issues: Disallowance of alleged non genuine purchases for assessment years 2009-10, 2010-11 & 2011-12.

Analysis:
The appeals by the same assessee were based on disallowance made for alleged non genuine purchases in three assessment years. The assessing officer, upon receiving information from the Sales-tax department, reopened the assessments under section 147 of the Income Tax Act. The purchases in question were found to be non genuine, leading to disallowances and additions in different assessment years. The assessee submitted documentary evidence to prove the genuineness of the purchases, but the assessing officer remained unconvinced. Consequently, disallowances and additions were made by the assessing officer, which were contested before the Commissioner of Income-tax (Appeals). The Commissioner restricted the disallowance in one assessment year but confirmed the additions in the other two years due to profit element estimations. The appeals were heard ex parte as the assessee was absent, and the Tribunal upheld the Commissioner's decision, dismissing the appeals based on the available evidence and previous Tribunal decisions in similar cases.

The assessing officer had specific information indicating non genuine purchases by the assessee, which remained unproven during the assessment proceedings. The Commissioner estimated the profit element in the non genuine purchases at 12.5% and granted partial relief in one year but confirmed the additions in the other years where the profit element exceeded the disallowances. The Tribunal found the Commissioner's decision consistent with previous Tribunal views on similar disputes, upholding the decision based on the available evidence and legal principles. Consequently, the appeals were dismissed, affirming the disallowances and additions made by the assessing officer for the assessment years in question.

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