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2017 (10) TMI 1633 - ITAT MUMBAIEstimation of income - bogus purchases - CIT(A) sustaining only an addition @ 15% profit rate on total purchases made from 2 purchase parties as the assessee failed to prove the genuineness of the said purchases - HELD THAT:- It is law that when sales are not doubted, 100% disallowance for bogus purchase cannot be done. This proposition is supported from Hon’ble jurisdictional High Court decision in the case of Nikunj Eximp Enterprises [2013 (1) TMI 88 - BOMBAY HIGH COURT]. Facts of the present case indicate that assessee has made purchase from the grey market. Making purchases through the grey market gives the assessee selling on account of non-payment of tax and others at the expense of the exchequer. In such situation, in our considered opinion, on the facts and circumstances of the case the 15% disallowance out of the bogus purchases meets the ends of justice. We uphold the order of CIT(A) and direct that the disallowance be limited to 15% of the bogus purchases. Appeal filed by the Revenue stands dismissed.
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