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2018 (2) TMI 1632 - ITAT MUMBAIBogus purchases - AO disallowed the 25% of total cost of purchases in absence of proof of delivery - disallowance of cost of purchases of steel - Held that:- Respectfully following the decision of Hon’ble Gujarat High Court in CIT Vs Simit P Seth [2013 (10) TMI 1028 - GUJARAT HIGH COURT] and Hariram Bhambani (2015 (2) TMI 907 - BOMBAY HIGH COURT), the disallowance of cost of purchases of steel is restricted to 5% of the purchases. The assessing officer is directed accordingly. In the result the ground No.1 of the appeal is partly allowed. Disallowance/addition on account of commission - Held that:- The disallowance of commission is based on assumption and presumptions of assessing officer. The assessing officer has not brought any material on record to substantiate his action. Thus, the addition on account of 1% of total purchases added by AO is deleted. - Appeal of the assessee is partly allowed.
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