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2024 (2) TMI 112 - ITAT MUMBAIEstimation of income - bogus purchases - AO restricted the disallowance to 12.5% and 10% for the assessment years 2009-10 and 2010-11, respectively - claim of the assessee that all the payments were made by account payee cheque - HELD THAT:- We find that before the lower authorities, the assessee was neither able to produce the parties nor could furnish the documents as directed by the AO. Even before us, no such details are available on record. Therefore, it is evident that the assessee has failed to prove the genuineness of the purchases made from the supplier, also evident from the record that the Revenue has not doubted the usage of materials for construction contract work undertaken by the assessee. It cannot be doubted that without the purchase of material, the assessee cannot carry out the construction work. Therefore, it appears to be a case of bogus bills arranged from the aforesaid entities and materials purchased from somewhere else at a lower cost. Thus, we deem it appropriate to restrict the disallowance to 8% of the disputed purchases in both assessment years. We find that the same is also in line with the judgment of Paramshakti Distributors Ltd. [2019 (7) TMI 838 - BOMBAY HIGH COURT]. Decided partly in favour of assessee.
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