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2017 (12) TMI 785 - ITAT MUMBAIBogus purchases - Held that:- The Hon’ble Gujrat High Court in CIT vs. Simit P. Seth (2013 (10) TMI 1028 - GUJARAT HIGH COURT) upheld the decision of the Tribunal and sustained the addition 12.5% of the total bogus purchases holding that only profit element embedded in such purchases can be added to income of the assessee. Hence, following the principles law laid down by the Hon’ble High Courts of Bombay and Gujarat, discussed above, we uphold the order of the Ld. CIT(A) and dismiss all the grounds of appeal of the assessee and direct the AO to make addition @ 12.5% of the total amount of bogus purchases made by the assessee to the income of the assessee.
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