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2018 (4) TMI 1281 - ITAT MUMBAIAssessment u/s 153A - Addition of bogus purchases - Held that:- Enquiry could not be completed by the authorities below as notices u/s 133(6) returned unserved, inspector gave adverse report after verification and also assessee could not produce these parties before the AO, but, however, the entire alleged bogus purchases could not be added as was done by the authorities below keeping in view ratio of decision of Hon’ble Supreme Court in the case of Kachwala Gems (2006 (12) TMI 83 - SUPREME COURT) We direct the AO to disallow 12.5% of the alleged bogus purchases and accordingly depreciation shall be re-worked by the AO after such disallowance. The claim of the assessee for revenue expenditure shall also be accordingly reduced to the tune of additions sustained by us to the tune of 12.5% of the alleged bogus purchases. - Decided partly in favour of assessee.
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