Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (6) TMI 485 - ITAT MUMBAIAddition u/s 69C - unexplained expenditure in respect of bogus purchases - G.P. determination - Held that:- We find that the assessee has raised the issue in the cross-objection that the addition sustained towards GP on bogus purchases at the rate of 12% over and above, the GP of 7.5% already declared by the assessee. The AR submitted before the Bench that the CIT(A) has erred in sustaining 12% of GP on such bogus purchases without allowing any credit towards gross profit rate already declared by the assessee in the books of accounts included in the so called bogus purchases and prayed that GP of 4.7% should be sustained which worked out by subtracting 7.25% of the GP declared by the assessee from 12% of GP applied by the CIT(A). We find that it would be reasonable if GP instead of 4.75% as prayed by the assessee, the GP of 8% is applied in place of 12%. We, therefore, direct the AO to apply to GP 8% on the bogus purchases. The cross-objection filed by the assessee is partly allowed.
|