TMI Blog2021 (4) TMI 1332X X X X Extracts X X X X X X X X Extracts X X X X ..... ri Gurbinder Singh (DR) ORDER PER AMARJIT SINGH, JM: The assessee has filed the present appeal against the order dated 21.01.2019 passed by the Commissioner of Income Tax (Appeals)-45, Mumbai [hereinafter referred to as the CIT(A) ] relevant to the A.Y. 2011-12. 2. The assessee has raised the following grounds: - 1. a) The Learned Commissioner of Income Tax (Appeals) has erred in law and fact son records in confirming an addition of 15,61,217 by arbitrarily estimating the additional Gross profit @ 5% of Turnover as against 4.38% already offered to tax by the Appellant. b) The appellant submit that it have been engaged in trading of the Leather articles, transported in hand carts, items of purchases are identifiable against the sales. 2. The Learned Commissioner of Income Tax (Appeals) has erred in law and facts on records in holding the reopening of the assessment as valid based on incorrect fact that no objection was taken by the appellant against the reopening of the assessment, whereas the appellant submit that the assessment was made ex-parte while sending the notice u/s 148 to a person not authorized by him at that time. 3. The Learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 27860582930V Milestone Corporation AFCPR4544M 2010-11 589500 6 27250554020V Sheetal Trading Co ABPPL5107M 2010-11 1442813 7 27750595164V Deep Enterprises AMTPS9884P 2010-11 3328918 8 27470616755V Somnath International AISPG1601K 2010-11 31750 9 27580551753V Sun Enterprises BFLPS5041C 2010-11 475875 10 27290663802V Liberty Trading Corporation ANAPB3443P 2010-11 528750 11 27240608588V Harsh Corporation ADKPN3382R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 92109V Ghatalia Steels/Divine Enterprises AALPG1552E 2010-11 1365300 26 27580726450V Meridian Trading Co. AZGPS2040D 2010-11 113535 27 27910742807V Chehar Trading Pvt. Ltd. AADCC8422G 2010-11 589500 28 27980364002V Pratik Trading Co. AVBPS76574 2010-11 1442813 29 27140189603V Ashit Traders AAIPD4282F 2010-11 3328918 30 27890612159V Ascent Enterprises AAEPB3795R 2010-11 321750 31 27060745233V Balaji Impex AMVPK3444R 2010-11 47587 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot be made regarding which no doubt is raised. In the circumstances, it appears that the assessee may have purchased the gods in grey market at a lower rate and obtained bills for accommodating the purchases made. It is also seen that the AO has ejected the books of accounts u/s 145(3) of the Act. If the books results are not giving proper results the AO has to estimate the profit at a reasonable percentage, he cannot make addition of all purchases as the income. No business gives all purchases as profits particularly the trading margins are low in a competitive market. It is seen that many Benches of ITAT and Hon'ble High Courts have held that when purchases are supported by sufficient documentary evidences, then merely because of nonappearance before the AO, one cannot conclude that the purchases were not made by the assessee. In the case of Nangalia Fabrics 40 taxmann.com 206, Gujarat High Court has held that where purchases were supported by the bills, entries were made in the books of accounts and payment was made by cheque, the said purchases could not be held as bogus. There are many decisions wherein the ITAT, Mumbai, has upheld addition of a Certain percentage of alleg ..... X X X X Extracts X X X X X X X X Extracts X X X X
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