TMI Blog2021 (10) TMI 828X X X X Extracts X X X X X X X X Extracts X X X X ..... Y. 2009-10 is 9.17%. In view the nature of business of the assessee i.e. trader in manufacturer and dealer in watches, and the Gross Profit ratio to sales for the last three preceding assessment years and also current assessment year it would be justified if the profit element embedded in those purchases are estimated at 9.5% Thus we restrict the disallowance of purchases to 9.5% and compute the income accordingly - Appeal of the assessee is partly allowed. - ITA NO. 7800/MUM/2019 - - - Dated:- 1-10-2021 - SHRI C.N. PRASAD, HON'BLE JUDICIAL MEMBER Assessee by : Shri Vinod Mehta Department by : Shri Sanjay J. Sethi ORDER PER C.N. PRASAD (JM) 1. This appeal is filed by the assessee against order of the Lear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Not convinced with the submissions of the assessee the Assessing Officer treated the purchases as non-genuine and he was of the opinion that assessee had obtained only accommodation entries without there being any transportation of materials and the assessee might have made purchases in the gray market. Assessing Officer observed that the notices issued u/s. 133(6) of the Act to the parties are returned unserved with a remark non known/left and the assessee has not produced the parties before the Assessing Officer. It is the finding of the Assessing Officer that assessee made sham and non-genuine purchases transaction which was accounted in the books of account by the assessee. Therefore, Assessing Officer treated ₹.22,59,005/- as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8.50% Therefore, it is submitted that estimation on addition, if at all, may be made at 9% rather than 12% made by the Ld.CIT(A). Reliance was placed on the decision of the Coordinate Bench in the case of ACIT v. M/s. K.P. Sanghvi Sons LLP in the case of ITA.No. 2455/Mum/2017 dated 28.09.2018. 5. Ld.DR vehemently supported the orders of the authorities below. 6. Heard both sides, perused the orders of the authorities below. It is not in dispute that sales have been accepted as genuine from out of these purchases. When the sales have been accepted as genuine the entire purchases cannot be treated as non-genuine. The Hon'ble Gujarat High Court in the case of Bholanath Polyfab Pvt. Ltd [355 ITR 290 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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