2021 (3) TMI 785

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....xed for hearing on 22.10.2020, 11.01.2021 and 02.03.2021, neither the assessee nor its authorized representative appeared before the Bench on the above dates. As there is non-compliance by the assessee, we are proceeding to dispose off this appeal after examining the materials available on record and hearing the Ld. Departmental Representative (DR). 2. The grounds of appeal filed by the assessee read as under : 1. (a) On facts and circumstances of the case and in law, Ld. CIT(A) erred in confirming the action of the A.O and approving the addition calculated by the A.O on alleged bogus purchases without appreciating the facts that the opinion of the A.O is based on merely presumptions and sub conjectures and not on any material e....

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.... NB Enterprises ; Rs. 9,35,725/- from Kamlesh Trading Co. and Rs. 39,13,436/- from Paras Enterprises, the Assessing Officer (AO) issued notice u/s 148 for reopening the assessment. During the course of reassessment proceedings, the AO issued notice u/s 133(6) to the disputed parties in the address filed by the assessee. The purpose was to verify the genuineness of the transaction. However, those notices were returned unserved by the postal authorities with the remarks 'not known' or 'no such address', 'left' etc. Therefore, the AO asked the assessee to produce those parties before him with their books of accounts. However, the assessee failed to do so. It is recorded by the AO that the assessee filed before him (i) copy of ledger accounts a....

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....er of the AO, the assessee filed an appeal before the Ld. CIT(A). We find that vide order dated 30.04.2019, the Ld. CIT(A) held that : "5.7 From the aforesaid cited decision of Gujarat High Court in the case of Simit P Sheth (supra), it can be observed that the appropriate GP percentage for computing the unaccounted profits from the purchases from the alleged hawala/bogus suppliers should factor the savings of taxes etc. due to the unaccounted sales and the GP already shown in the regular books. It is observed that the ratio of the decision of the Gujarat High Court in the case of Simit P Sheth (supra) cannot be squarely applied to the facts of the case of our assessee since the sales tax rate prevalent in Gujarat was 10% as agains....

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.....5% and to allow a set off of the GP already shown by the assessee in regular course of accounts. Thus it is submitted by him that the order passed by the Ld. CIT(A) be affirmed. 6. We have heard the Ld. DR and perused the relevant materials on record. As mentioned earlier, in the instant case the notice u/s 133(6) issued by the AO to the concerned parties in the address given by the assessee were returned un-served by the postal authorities with the remarks 'not known' or 'no such address' or 'left'. Thereafter, the AO asked the assessee to product those parties before him to verify the genuineness of the transactions. However, the assessee failed to do so. It is recorded by the AO, that the assessee filed before him (i) copy of ledger ....