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2014 (2) TMI 1344 - GUJARAT HIGH COURTBogus purchases - ITAT restricting the addition made by AO to 5% of the total bogus purchases - Held that:- In the present case, though it may appear that the purchases have been shown to have been made through M/s. Vishal Traders but supplied by some other agency, in absence of other additional facts noted by this Court in case of Sanjay Oilcake Industries[2008 (3) TMI 323 - GUJARAT HIGH COURT] gross ad hoc addition of 25% may not be justified. In the present case, the assessee could produce before the authorities the precise rate at which the purchases were made from M/s. Vishal Traders and other suppliers to demonstrate that the purchases made on the same day carried the same price. This would substantially eliminate the angle of the purchase price being artificially inflated. Additionally, the Tribunal also noted other parameters such as higher net and gross profit rates of the present year compared to the earlier years of the recent past. No question of law arises.
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