2021 (5) TMI 375

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..... ptioned appeals by the same assessee arise out of two separate orders, both dated 29-05-2019, of learned Commissioner of Income-tax (Appeals)-4, Mumbai, for the assessment years 2010-11 and 2011-12. 2. The common dispute in these appeals basically relate to additions made on account of non genuine purchases. 3. Briefly the facts, more or less common in these appeals are, the assessee, an individ .....

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..... urchases through proper evidence. However, evidences furnished by the assessee were not to the satisfaction of the assessing officer. Further, as alleged by the assessing officer, notices issued under secction 133(6) of the Act to the concerned selling dealers returned back unserved as they were not found at the given address. Therefore, he concluded that the purchases are non genuine. Thereafter .....

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..... been paid, no further disallowance on account of suppression of profit should have been made. She submitted, the assessee has produced purchase bills, bank statements showing payment, quantitative details, etc. to prove the genuineness of purchases. She submitted, purely relying upon the information received from Sales-tax department, assessing officer has treated the purchases as non genuine. Fu .....

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..... ent years are non genuine as the concerned selling dealers were identified as hawala operators. In course of assessment proceedings, though, the assessee had furnished purchase invoices, bank statement, etc.; however, he could neither produce the concerned selling dealers nor any authentic evidence to establish on record that the goods, indeed, were purchased from the declared source and were del .....

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..... 12.5%. Now, the issue which arises for consideration is whether the disallowance made at 12.5% is fair and reasonable. Considering the fact that the assessee is a trader in ferrous and non ferrous metals, wherein, the profit margin normally expected to be earned varies between 2% to 5%, we are of the view that disallowance @5% of the alleged non genuine purchases would take care of suppression of .....

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