TMI Blog2019 (3) TMI 2X X X X Extracts X X X X X X X X Extracts X X X X ..... k unserved. Claim of the assessee that the purchases made are genuine cannot be accepted. AO has accepted the fact that the assessee has purchased goods from some other source and for that reason alone he has estimated the profit at the rate of 12.5% which has been sustained by Commissioner (Appeals). The assessee has neither appeared before us nor brought any material on record to controvert the aforesaid factual finding of the departmental authorities and has also failed to demonstrate that the profit rate adopted at 12.5% is unreasonable. - Decided against assessee. - ITA no. 1040/Mum./2018 - - - Dated:- 26-12-2018 - Shri Saktijit Dey, Judicial Member And Shri N.K. Pradhan, Accountant Member For the Assessee : None For t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssued under section 133(6) of the Act returned unserved. Therefore, he called upon the assessee to produce the selling dealers along with the copy of the Income Tax returns, Ledger accounts, bank statements, original PAN card et cetera. As observed by the assessing officer, except, furnishing the purchase bills and bank statements indicating payment made to the concerned parties, the assessee could not furnish any conclusive evidence to prove the purchases made. However, the assessing officer accepted that the assessee was able to co-relate the purchase of material with the allocation of raw materials and sales of finished products. Therefore, he was of the view that the assessee must have purchased the goods from grey market and to r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der section 147 of the Act. Therefore, the validity of re-opening of assessment is upheld. As regards the merits of the addition made on account of bogus purchases, it is evident, neither before the assessing officer nor before the learned Commissioner (Appeals) the assessee has produced any supporting evidence either to prove delivery of goods or the fact that the goods were actually sold by the concerned parties. The assessee even could not establish the existence of the concerned parties, considering the fact that the notices issued under section 133(6) of the Act returned back unserved. In the aforesaid circumstances the claim of the assessee that the purchases made are genuine cannot be accepted. However, the assessing officer has acce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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