2021 (3) TMI 632

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s authorized representative appeared before the Bench on the above date. As there is non-compliance by the assessee, we are proceeding to dispose off these appeals after examining the materials available on record and after hearing the Ld. Departmental Representative (DR). As common issues are involved, we are deciding these appeals by a consolidated order for the sake of convenience. We begin with the AY 2009-10. 2. The grounds of appeal read as under : 1. Whether on the facts and circumstances of the case and in law, the Id. CIT(A) justified in restricting the addition made by the AO to 6.75% of bogus purchase as against the addition made at 7.28% of the bogus purchases, ignoring that the assesses was unable to prove the genuineness of....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the AO noted that the assessee failed to produce before him the details of transportation of the materials supposed to have been purchased from the said hawala dealers. Thus considering the facts of the case and taking into account the average GP for the year 2006-07, 2007-08 and 2008-09 which comes to 7.28%, the AO estimated the profit @ 7.28% on the disputed purchases of Rs. 58,24,569/- which comes to Rs. 4,24,029/-. Accordingly, he made an addition of Rs. 4,24,029/-. 4. Aggrieved by the order of the AO, the assessee filed an appeal before the Ld. CIT(A). We find that vide order dated 22.05.2019, the Ld. CIT(A) restricted the disallowance to 6.75% of the transactions covered by accommodation entries by holding that : "9. Ordinarily on....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....1% and net addition to GP ratio shall be to the tune of 5.39% on bogus purchases, hence, we allow partial relief to the assessee. We order accordingly. It can be seen that in the above the Hon. ITAT has reduced addition further vis-a-vis the originally accepted figure of 12.5%. Further in case of M/s Geolife Organics vs. ACIT ITA Nos. 3699, 4276, 4917, 4760/Mum/2016 of Hon. ITAT, Mumbai dated 05.05.2017, despite all deficiencies in assessment procedure, as against 12.5% disallowance made by Assessing Officer, the Hon. ITAT fixed the rate of disallowance at a lower level. 10. All submissions of the appellant is duly considered. The business is in trading MS Sheets, MS Round Bar and MS Patta. The Assessing Officer disallowed 7.28% of th....