TMI Blog2020 (4) TMI 541X X X X Extracts X X X X X X X X Extracts X X X X ..... ble income. Since the onus of proof lies on the assessee to bring on record the respective suppliers but since the suppliers of packaging material is very small and assessee could not submit any documents in support of purchases made from the suppliers. Since Ld. AR submitted that the packaging materials are delivered at the place of business. We cannot reject the contention of the assessee. Since the assessee could not substantiate the documentation for the purchases, we are inclined to disallow certain percentage of the purchases on the ground that assessee may not have carried on with the operation of repacking the chemicals without packaging material - disallow 10% of the packaging material as reasonable - Grounds raised by the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all the supporting documents to ascertain the genuineness of the transaction alongwith their ITR and copy of bank statements showing the above transactions. Even though, several opportunities were given to the assessee, but assessee has not produced the aforesaid parties nor offered any documents for verification. Accordingly, these purchases were considered as bogus and addition was made 100% to the extent of bogus purchases. 4. Aggrieved with the above order, assessee preferred an appeal before Ld. CIT(A) and Ld. CIT(A) after considering the submissions of the assessee, dismissed the appeal of the assessee and sustained the disallowance made by the AO. 5. Aggrieved with order of Ld. CIT(A), assessee is in appeal before us raising th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Ld. CIT(A) failed to appreciate that addition has been made without Ld. Assessing Officer carrying out any verification merely on the basis that appellant failed to make available the suppliers for Ld. Assessing Officer's verification, without consideration facts properly. 6. Appellant pray that addition made be deleted. 7. Appellant craved your honour's leave to add, amend or alter any Grounds of Appeal at the time of hearing or before. 6. Before us, Ld. AR of the assessee submitted that assessee imports chemicals and repacks them for retail purposes according to the requirement of the customers and assesse regularly buys packaging material for the above purpose and all the packaging materials were delivered at t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... supporting documents in respect of the purchases. In this respect, he supported the finding of Ld. CIT(A) and relied upon the orders passed by the revenue authorities. 8. Considered the rival submissions and material placed on record. We notice that assessee is importing chemicals as one of the line of business and repacks them according to the requirement of customers. Considering the nature of business and packaging expenditure claimed by the assessee over the years shows that assessee is regularly purchasing packaging materials for the business which is in and around 4 to 5% of sales. The AO has disallowed 4.7 lakhs this year. Whereas, the assessee has declared considerable profit over the years and there is no need for the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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