TMI Blog2021 (2) TMI 418X X X X Extracts X X X X X X X X Extracts X X X X ..... ct that the purchases were made from the declared source. However, considering the fact that the assessee has effected corresponding sales, doubt was only with regard to the source of purchases. For this reason alone, the Assessing Officer has estimated the profit element embedded in non-genuine purchases @ 25% and learned Commissioner (Appeals) has restricted to 12.5%. This is solely for the reas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtaining to the assessment years 2009-10, 2010-11 and 2011-12. 2. When these appeals were called for hearing, no one was present on behalf of the assessee to represent them. There is no application seeking adjournment either. Considering the nature of dispute, I proceed to dispose off the appeals ex-parte qua the assessee after hearing the learned Departmental Representative and on the basis of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 3,52,802 in Assessment Year 2011-12 are non-genuine, the Assessing Officer re-opened the assessments under section 147 of the Act. In the course of assessment proceedings, the Assessing Officer called upon the assessee to prove the genuineness of the aforesaid purchases through supporting evidence. Since, the evidences produced by the assessee were not to the satisfaction of the Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntal Authorities, it is manifest that there was specific information received from the Sales Tax Department to indicate that certain purchases made by the assessee were non-genuine as concerned selling dealers were identified as hawala operators by the Sales Tax Department. In the course of assessment proceedings, the Assessing Officer had called upon the assessee to furnish certain documentary ev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the reason that the assessee must have purchased the goods from unverified sources/grey market by not paying VAT and thereby suppressing the true profit. Considering the nature of business of the assessee and the profit rate generally adopted by the Tribunal in such type of cases, I do not find any infirmity in the decision of learned Commissioner (Appeals) in restricting the addition to 12.5% ..... X X X X Extracts X X X X X X X X Extracts X X X X
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