1 ITXA4284-10.doc IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION ttm INCOME TAX APPEAL NO.4284 OF 2010 The Commissioner of Income Tax-12 .. Appellant Vs. M/s.Silverpoint Exporters, Mumbai .. Respondent. Ms.Suchitra Kamble for the appellant CORAM : J.P. DEVADHAR & K.K. TATED, JJ. DATE : 27th SEPTEMBER, 2011. P.C. 1. Whether the ITAT was justified in upholding the order passed by the CIT(A) and deleting the disallowance of 25% of purchases made by the Assessing Officer is the question raised in this appeal. 2. The Assessment Year involved herein is A.Y. 2003-04. 3. In the Assessment Year in question, the Assessee had claimed purchases of Rs.1,46.67,603/- in the trading and profit and loss account. The Assessing Officer disallowed 25% of purchases by treating the same as unproved purchases on the ground that the Assessee failed to submit any evidence such as bills, vouchers in respect of the purchases made. 4. The CIT(A) has deleted the disallowance on the ground that the Assessee had obtained tax audit report u/s. 44AB of the Income Tax Act, 2 ITXA4284-10.doc 1961 wherein the entire purchases were found to be genuine. The CIT(A) held that there were no material to disbelieve that 25% of the purchases were not genuine and accordingly, the CIT(A) deleted the disallowance. The ITAT has upheld the decision of the CIT(A). In our opinion, the decision of the ITAT in deleting the disallowance on the basis of the tax audit report submitted u/s.44AB of the Act cannot be faulted. 4. Accordingly, the appeal is dismissed. (K.K. TATED, J.) (J.P. DEVADHAR, J.)