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2018 (12) TMI 1948 - ITAT MUMBAIEstimation of income - Bogus purchases - assessee has failed to furnish relevant documentary evidences to conclusively prove the genuineness of purchases made from the concerned party - HELD THAT:- It is a fact on record that the sales turnover shown by the assessee has not been disputed or doubted by the departmental authorities Addition of the entire non genuine purchases would be improper. In such circumstances what the assessee might have suppressed is the profit element embedded in such purchases, which may also include the local tax payable. Therefore, to take care of any leakage in revenue, only the profit element embedded in such purchases can be considered for addition. Thus, considering the overall facts and circumstances of the present case we are of the view that addition at the rate of 12.5% of the non genuine purchases would be reasonable and serve the interests of justice. Accordingly, we direct the assessing officer to restrict the addition to 12.5% of the non genuine purchases. Ground raised is partly allowed.
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