2021 (10) TMI 261

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....peal is filed by the assessee against order of the Learned Commissioner of Income Tax (Appeals)-28, Mumbai [hereinafter in short "Ld.CIT(A)"] dated 29.11.2019 for the A.Y. 2011-12 in confirming the addition made by the Assessing Officer. 2. Briefly stated the facts are that, assessee an individual engaged in the business of pipes and fittings filed return of income on 29.09.2011 declaring incom....

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....urchases made are genuine. Assessee further submitted that the payments are made through account payee cheques as such contended that all the purchases are genuine. 3. However, the Assessing Officer treated the purchases as non-genuine and he was of the opinion that assessee had obtained only accommodation entries. Assessing Officer issued notice issued u/s.133(6) of the Act to verify the trans....

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....epted as genuine the entire purchases cannot be treated as non-genuine. The Hon'ble Gujarat High Court in the case of Bholanath Polyfab Pvt. Ltd [355 ITR 290] held that when the assessee made purchases and sold the finished goods as a natural corollary not the entire amount covered under such purchases would be subject to tax but only the profit element embedded therein. Similar view has been ....