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2018 (6) TMI 1051 - ITAT MUMBAIAddition made on account of bogus purchases - GP determination - books of accounts have not been rejected - Held that:- assessee had shown gross profit of 17.74% on the goods so purchased. The gross profit shown in respect of such alleged bogus purchases vis-à-vis other purchases were same. Thus when the assessee himself has declared GP of 17.74% and the GP declined in respect of alleged bogus purchases was not lower than the normal GP, there is no justification for making further addition of 12.5%. However, keeping in view the totality of facts and circumstances of the case vis-à-vis observation of the AO we direct the AO to restrict the addition to the extent of 2% of such alleged bogus purchases.
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