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TMI Blog2019 (5) TMI 2030X X X X Extracts X X X X X X X X Extracts X X X X ..... g grounds of appeal : "1. On the facts and circumstances of the case and in law, the learned CIT(A) erred in making disallowance of non genuine purchase claims of Rs.15,47,800/- on the basis of G.P Ratio @ 12.5% on purchase (Rs.1,23,82,428/-) under the Income Tax Act 1961, without considering the facts of the case. 2. The appellant craves, leaves to add, alters, amends or deletes any grounds of appeal at the time of hearing." 2. Briefly stated, the assessee which is engaged in the business of trading in ferrous and non-ferrous metals under the name and style of Vijesh Metal (India) had filed his return of income for A.Y. 2009-10 on 26.09.2009, declaring total income at Rs.2,79,090/-. The return of income filed by the assessee was pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the aforementioned parties, along with the details of payments made to them. On the basis of the addresses of the aforementioned parties made available by the assessee the A.O issued notices under Sec.133(6) by registered post to them, which however were returned bank unserved by postal authorities with the remarks 'not known', 'no such address' or 'left' etc. The A.O brought the aforesaid facts to the notice of the assessee and directed him to substantiate the authenticity of the aforementioned purchase transactions on the basis of supporting documentary evidence and also to produce the said parties for necessary examination before him. However, the assessee partly complied with the aforesaid directions of the A.O and furnished only some d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ced by the assessee, dismissed the appeal. 5. The assessee being aggrieved with the order passed by the CIT(A) has carried the matter in appeal before us. We find that despite the fact that the assessee was put to notice as regards the date of hearing of the appeal, however has failed to put up an appearance before us. In the backdrop of the aforesaid facts, we are constrained to proceed with as per Rule 24 of the Appellate Tribunal Rules, 1962 and therein dispose off the appeal after hearing the respondent revenue and perusing the orders of the lower authorities. 6. Admittedly, the assessee had failed to substantiate the authenticity of the purchase transactions under consideration. We find that the assessee had failed to place on record ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court of Bombay in its recent judgement in the case of Pr. Commissioner of Income Tax-17 Vs. M/s Mohhomad Haji Adam & Company (ITA No. 1004 of 2016, dated 11.02.2019), while upholding the order of the Tribunal, had observed that the addition in the hands of the assessee as regards the bogus/unproved purchases was to be made to the extent of bringing the G.P rate of such purchases at the same rate as that of the other genuine purchases. The Hon'ble High Court while concluding as herein above, had observed as under: "8. In the present case, as noted above, the assessee was a trader of fabrics. The AO found three entities who were indulging in bogus billing activities. A.O. found that the purchases made by the assessee from these entities we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... into account, the corresponding cost price is required to be deducted and tax cannot be levied on the same price. We have to reduce the selling price accordingly as a result of which profit comes to 5.66% Therefore, considering 5.66 % of Rs.3,70,78,125/- which comes to Rs.20,98,62 1.88 we think it fit to direct the revenue to add Rs.20,98,621.88 as gross profit and make necessary deductions accordingly. Accordingly, the said question is answered partially in favour of the assessee and partially in favour of the revenue." 9. In these circumstances, no question of law, therefore, arises. All Income Tax Appeals are dismissed, accordingly. No order at costs." As such, the Hon'ble jurisdictional High Court had observed that the addition in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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