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2018 (3) TMI 575 - ITAT MUMBAIBogus purchases - estimation of 5% profit on the alleged unverifiable purchases - Held that:- AO & CIT(A) has accepted the corresponding sales and even purchases were accepted. AO only made the addition by estimating further profit of 5% on such purchases. However, with regard to the payment so made by the cheques no evidence has been brought on record proving that suppliers have withdrawn cash immediately after depositing the cheques of the assessee. Under these facts and circumstances, we do not find any merit in treating the purchases as bogus and estimating further profit of 5% on the alleged suspicion purchases. Accordingly, AO is directed to delete the same. - Decided in favour of assessee.
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