TMI Blog2021 (3) TMI 164X X X X Extracts X X X X X X X X Extracts X X X X ..... ses, however, as observed by Commissioner (Appeals), the Assessing Officer has not disputed that the assessee had effected the corresponding sales. Assessee might have purchased the goods from grey market by suppressing the profit element. In such circumstances, as rightly held by Commissioner (Appeals), only the profit element embedded in such purchases can be considered for addition. Further, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee, a partnership firm, is engaged in the business of trading in bamboos, timbers and building materials. For the assessment year under dispute, assessee filed its return of income on 13-10-2010 declaring income of ₹ 8,90,258/-. Initially, assessment in case of the assessee was completed under section 143(3) of the Act. Subsequently, on the basis of information received from the Sales- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from Sumit Sales as non genuine and added back to the income of the assessee. Assessee contested the aforesaid addition before the first appellate authority. After considering the submissions of the assessee, learned Commissioner (Appeals) restricted the disallowance to 12.5% of the disputed purchases. Thus, the addition made by the assessing officer was reduced to ₹ 1,26,808/-. 4. When t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hased the goods from grey market by suppressing the profit element. In such circumstances, as rightly held by the learned Commissioner (Appeals), only the profit element embedded in such purchases can be considered for addition. Further, in my considered opinion, the disallowance sustained by learned Commissioner (Appeals) by estimating the profit rate at 12.5% is fair and reasonable; hence, does ..... X X X X Extracts X X X X X X X X Extracts X X X X
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