2021 (10) TMI 2

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....n appeal by the revenue against order dated 30-04-2019 of learned Commissioner of Income-tax (Appeals)-22, Mumbai for the assessment year 2011-12. 2. The dispute in the present appeal is confined to disallowance made on account of non genuine purchases. 3. Briefly the facts are, the assessee, a resident company, is engaged in manufacture and sale of pipe fittings. For the assessment year und....

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....cept the purchases as genuine. Therefore, ultimately he concluded that the purchases claimed to have been made from the two parties are non genuine. Noticing that the assessee has disclosed gross profit rate of 16% for the year under consideration, the Assessing Officer held that the assessee must have earned profit at the same rate from the non genuine transaction. Accordingly, he disallowed 16% ....

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....urchasing goods from the very same parties. He submitted, while considering similar disallowance made in assessment year 2010-11 in respect of purchases made from the very same parties, the Tribunal has restricted the disallowance to 3% of the non genuine purchases. In this regard, he drew attention to the order of the Tribunal in ITA No.6719/Mum/2018 dated 20-05-2020. Thus, he submitted, in the i....

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.... claimed to have been made by the assessee were non genuine. As it appears from the facts on record, in course of assessment proceedings, though, the assessee furnished some documentary evidences, however, they were not to the satisfaction of the Assessing Officer. Therefore, he treated the purchases as non genuine. However, ultimately, he restricted the disallowance to 16% being the gross profit ....