2019 (9) TMI 1760

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.... ORDER These are appeals by the assessee wherein the assessee is aggrieved that the learned CIT-A has erred in sustaining 12.5% disallowance on account of bogus purchases, pertaining to assessment year 2010-11 & 2011-12. Earlier the appeals were disposed of by the ITAT ex-parte. Subsequently, they were recalled. 2. Brief facts of the case are that assessee in this case is engaged in the bu....

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....nd that assessee has provided the documentary evidence for the purchase. Adverse inference has been drawn due to the inability of the assessee to produce the suppliers. I find that in this case the sales have not been doubted. It is settled law that when sales are not doubted, hundred percent disallowance for bogus purchase cannot be done. The rationale being no sales is possible without actual pu....

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....t paragraph of the ITAT reads as under :- "5. I have considered the issue and gone through the facts and circumstances of the case. I find from the facts of the case and argument of both the sides that the CIT (A) has confirmed the profit rate at the rate of 12.5%, which according to me is on higher side going by the nature of business of the assessee i.e. ferrous and Non-ferrous. I am in....