2021 (5) TMI 375

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....ses. 3. Briefly the facts, more or less common in these appeals are, the assessee, an individual, is engaged in the business of trading in ferrous and non ferrous metals. For the assessment years under dispute, assessee had filed his returns of income in regular course. The returns of income so filed were initially processed under section 143(1) of the Act. Subsequently, the assessing officer received information from the Sales-tax department, Government of Maharashtra through the Investigation Wing that certain purchases claimed to have been made during the relevant period are non genuine as the concerned selling dealer has been identified as hawala operator. On the basis of such information, the assessing officer reopened the assessmen....

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...., bank statements showing payment, quantitative details, etc. to prove the genuineness of purchases. She submitted, purely relying upon the information received from Sales-tax department, assessing officer has treated the purchases as non genuine. Further, she submitted, adverse materials relied upon in course of assessment proceedings were also not supplied to the assessee. Finally, the learned Counsel submitted, considering the nature of business of the assessee and the profit ratio normally attached to such business, disallowance of 12.5% is on a much higher side; hence, same needs to be scaled down. 5. The learned Departmental Representative strongly relied upon the observations of the assessing officer and learned Commissioner (Appe....