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2019 (2) TMI 458 - DELHI HIGH COURTEstimation of income - ITAT applied the GP ration on additions made u/s 68 - Genuineness of purchase - bogus transaction or not - assessee claimed that the readymade garments were exported and claimed drawback amounts from the concerned authorities. After enquiry, the AO was of the opinion that the amounts claimed towards purchase of the raw materials were bogus - Held that:- the application of law by the lower revenue authorities [AO and the CIT(A)] was correct. Having accepted that the expenditure claimed was bogus, the ITAT, for strange and unexplained reasons, applied the GP Ratio which was entirely unwarranted and thus, reduced the tax liability of the assessee drastically. Decided in favor of revenue.
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