2021 (9) TMI 112

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....T MEMBER) Appellant by: None Respondent by: Smt. Smita Verm, DR ORDER Per Saktijit Dey (JM) : Captioned appeals by the same assessee arise out of three separate orders dated 15-02-2019 and 28-02-2019 of learned Commissioner of Income-tax (Appeals)-26, Mumbai, for the assessment years 2009-10, 2010-11 and 2011-12. 2. When the appeals were called for hearing no one was present on b....

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....es-tax department that certain purchases shown to have been made in the years under consideration are non-genuine, as they are in the nature of accommodation entries by way of bogus purchase bills, the assessing officer reopened the assessments of all the three years under section 147 of the Act. In course of the re-assessment proceedings, the assessing officer raised doubt regarding certain purch....

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.... goods must have been purchased from unverified sources / grey market leading to suppression of profit. Having held so, he disallowed 12.5% out of the alleged non genuine purchases in each assessment year under dispute and added back to the income of the assessee. Though, the assessee contested the aforesaid disallowance before learned Commissioner of Income-tax (Appeals); however, he was unsucces....

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....all stages remained doubtful. That being the case, the claim of the assessee that purchases have been made from the declared source is unacceptable. Further, considering the fact that assessee failed to prove the source of purchases, it can be concluded that by adopting such means the assessee has suppressed its true profits. In the aforesaid scenario, disallowance at 12.5%, being the profit eleme....