2020 (11) TMI 404

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....umar Department by: Shri R. Bhoopathi ORDER PER C.N. PRASAD (JM) 1. This appeal is filed by the assessee against the order of the Learned Commissioner of Income Tax (Appeals) - 7, Mumbai [hereinafter in short "Ld.CIT(A)"] dated 17.12.2018 for the Assessment Year 2009-10. 2. Assessee has raised following grounds in its appeal: - "1. The Income-tax Officer - 19(2)(5), Mumbai ....

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....rmed the action of the Assessing Officer inasmuch as the CIT(A) has not correctly appreciated the facts in its entirety; the addition on facts and in law, requires to be deleted. The appellants crave leave to add to, alter and/ or amend the aforesptated grounds of appeal." 3. Briefly stated the facts are that, the assessee, a firm, engaged in the business of trading in Ferrous and non-....

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....ssee had obtained only accommodation entries without there being any transportation of materials and the assessee might have made purchases in the gray market. The Assessing Officer treated purchases of Rs. 77,74,274/- as non-genuine. . The Assessing Officer however estimated the profit element from such purchases at 12.5% and disallowed Rs. 9,71,785/- while computing the income. On appeal the Ld.....

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....profit element embedded therein. Similar view has been taken by the Hon'ble Gujarat High Court in the case of CIT v. Simit P. Seth [38 taxman.com 385]. Simply because the parties were not produced the entire purchases cannot be added as held by the Bombay High Court in the case of CIT v. Nikunj Eximp [216 Taxman.com 171]. We agree with the view of the lower authorities that there should be an ....