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2017 (3) TMI 811 - ITAT MUMBAIDisallowance of bogus purchases - estimated profit rate at 12.5% - Held that:- We find that admittedly the assessee has made sales but could not produce the parties before the AO or before CIT(A) from whom the purchases were made. Even during an inquiry the Revenue could not trace these parties i.e. either the transporters or the sellers. Admittedly these parties from whom the assessee has made bogus purchases are hawala dealers declared by sale tax department of Maharashtra. In such circumstances we are of the view that the CIT(A) has reasonably estimated profit rate on bogus purchases and rightly estimated at 12.5% of the bogus purchase. We confirm the order of CIT(A) and appeal of assessee is dismissed.
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