2020 (11) TMI 404

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....hi 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 (hereinafter referred to as the Assessing Officer) er....

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.... 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-Ferrous metals filed return of income on 26.09.2009 declaring income of Rs. 57,5....

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....ion 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.CIT(A) sustained the addition as made by the Assessing Officer. 4. Before us, t....

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....rat 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 estimation of profit element from these purchases and should be estimated reasonably....