2017 (12) TMI 1796

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.... by the assessee challenging the order dated 15.5.2015 passed by the ld.CIT(A)-30, Mumbai wherein the assessee has challenged the restriction of net addition to 7.50% of the purchases from the parties which were not proved to be genuine. At the outset, we would like to mention here that neither the assessee nor its authorized representative appeared before this Tribunal when the appeal was call....

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....sued and served upon the assessee. The assessee is engaged in the business of ferrous and non-ferrous metals and its allied products. The AO during the course of assessment proceedings, issued notices u/s 133(6) to the various parties from whom the assessee made purchases during the year. However, the notice issued to Apex Ferromate Pvt Ltd was returned unserved by the postal authority. Thereafter....

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....it on the basis of undisclosed cash which has been utilized in such purchases. The addition was challenged before the FAA who partly allowed the appeal of the assessee vide para 2.10 and 2.12 of the appellate order which is as under : "2.10 Ground no.1 and II are general in nature and for the reasons to be given in respect of subsequent grounds, thee grounds needs not be adjudicated separ....

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....sed is partly allowed by estimating the embedded income at 12.5% of the total purchases of Rs. 96,08,509/- from the bogus supplier. However, as the appellant has already offered an average gross profit of 5% during the last few years, the net addition confirmed would be 7.50% (12.5%-5.00%0 Accordingly ground no.IV is partly allowed" 4. After hearing the ld DR. and on perusal of the records as p....