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TMI Blog2021 (2) TMI 351X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. At the outset, it is noticed that none has appeared on behalf of assessees in spite of calls and even no application for adjournment was moved. On the other hand, Ld. DR is present in the court and is ready with arguments. Therefore, we have decided to proceed with the hearing of the case ex-parte with the assistance of the Ld. DR and the material placed on record. 3. Since the issues raised in both the appeals are identical, therefore, for the sake of convenience, both appeals are clubbed, heard and disposed off by this consolidated order. First of all, we are taking ITA No. 4545/Mum/2019 for Assessment Year 2011-12. 4. The brief facts of the case are that assessee filed its return of income on 21.09.2011 declaring total income of R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... activities, which could not be carried out without actual purchase of material. The turnover achieved by the assessee has not been disputed or disturbed by the revenue and the payments were through banking channels. The assessee was in possession of primary purchase documents and was able to reconcile the quantitative details. However, at the same time, the stated purchases were under grave doubt since the assessee could not produce any of the party to confirm the transactions and the information received from investigation wing revealed that all the suppliers were engaged in carrying out only paper transactions without actual delivery of material. The complete onus to prove the purchases conclusively was on assessee, which has remained un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... king the higher margin that assessee might have earned in the alleged transaction and as per the decision of Coordinate Bench of ITAT and the decision of Hon'ble Gujrat High Court in the case of CIT vrs. Smith P. Seth (2013) 356 ITR 451 (Guj), we are inclined to direct the AO to estimate the income @ 3% (5% - 2%) of the alleged purchases. Accordingly, the grounds raised by the assessee are partly allowed. 9. Since, the other appeal by Shri Dinesh S. Dhokar in ITA No. 4546/Mum/2019 for Assessment Year 2010-11 are similar to the facts in above said appeal for Assessment Year 2011-12. Therefore, for parity of reason, we also partly allow the grounds of appeal raised by assessee. 10. In the net result, both the appeals filed by the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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