2021 (4) TMI 290 - ITAT MUMBAI - Income Tax

Head Note / Extract:
Estimation of income - bogus purchases - HELD THAT:- As notices issued by the AO u/s 133(6) to the said parties were returned un-served by the postal authorities with the remarks 'not known’. In response to a query raised by the AO, the assessee filed during the course of assessment proceedings copy of audited balance sheet, P&L account, audit report, bank statement, purchase/sale bill (party-wise) stock register, purchase/sale bill and mode of payment. AO observed that the assessee could not file transport receipts, octroi receipts, receipts from weighbridge, excise gate pass, goods inward register. We are of the considered view that the estimation be made @ 6% of the disputed purchases. Accordingly, we set aside the order of the Ld. CIT(A) and direct the AO to estimate profit @ 6% on the disputed purchases to tax. - Decided partly in favour of assessee.