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2021 (3) TMI 785 - AT - Income TaxEstimation of income - Bogus purchases - HELD THAT:- In the instant case the notice u/s 133(6) issued by the AO to the concerned parties in the address given by the assessee were returned un-served by the postal authorities with the remarks ‘not known’ or ‘no such address’ or ‘left’. Thereafter, the AO asked the assessee to product those parties before him to verify the genuineness of the transactions. The assessee failed to do so. It is recorded by the AO, that the assessee filed before him (i) copy of ledger accounts along with copy of purchase invoices of the specified parties, (ii) copy of bank statements evidencing payments made through proper banking channels by issuing account payee cheques in respect of all the parties, highlighting the relevant entries, (iii) chart showing the details of purchases of the alleged parties and (iv) details in respect of purchases from the abovementioned parties and the corresponding sales. As recorded by the AO, the assessee failed to file before him documents such as delivery challans, transport receipts, octroi receipts for payment of octroi duty, receipt of weighbridge for weighing of goods, excise gate pass, goods inward register. Considering the above facts and circumstances of the case and keeping in mind the nature of business of the assessee which is trading in ferrous and non-ferrous metals, we are of the considered view that estimating the profit @ 6% on the disputed purchases would be proper. Therefore, we set aside the order of the Ld. CIT(A) and direct the AO to estimate the profit @ 6% on the disputed purchase.
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