2021 (10) TMI 1488

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....f Appeal in ITA.No. 735/Mum/2020 (A.Y. 2011-12) 1) The Learned Income Tax Officer erred in adding to the Income of the assessee an amount of Rs.6,99,765/- being 12.50% of the alleged non genuine purchase of Rs. 55,98,127/- on account of unexplained purchases u/s. 69C and the CIT Appeals erred in confirming and further enhancing the addition to 100% of the alleged non genuine purchase. 2) Your Petitioner humbly submits that all documents and evidences (with in the control of your petitioner) such as copies of the purchase bills, copies of ledger accounts of the various parties in the books of your petitioner, copies of bank statements confirming the payments made, the quantitative statement in respect of entire purchases an....

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....er as non-genuine for the reason that assessee could not file lorry receipts, transportation details et.,. However, Assessing Officer disallowed 12.5% of the purchases amounting to Rs..15,25,458/-, Rs..6,99,765/- and Rs..11,99,103/- for the A.Y. 2009-10, A.Y. 2010-11 and A.Y. 2011-12 respectively, by estimating the profit element in such purchases. was disallowed. Assessee preferred appeal before the Ld. CIT(A) contending that all the purchases made from such parties are genuine and alternatively addition should be restricted only to the percentage of Gross Profit shown on genuine purchases. However, the Ld. CIT(A) enhanced the disallowance to 100% of purchases relying on the decision of the Hon'ble Bombay High Court in the case of Shor....

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....supra) to the cases where there is a disallowance made under non-genuine purchases and the observation of the Tribunal is as under: - "7. Upon assessee's appeal learned CIT(appeals) has enhanced the addition to hundred percent. In doing so she has referred to the honourable jurisdictional High Court decision in the case of Shoreline Hotels Pvt. Ltd.(supra). It is settled law that case law cannot be considered in isolation of the context thereof. This is duly the ratio arising of out of the decision of honourable Supreme Court in the case of Sun Engineering Works Pvt. Ltd. (198 ITR 2970. In the decision of Shorteline Hotels Pvt. Ltd. (supra) considered by the Hon'ble Bombay High Court was in context of the order passed by le....