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2019 (4) TMI 1106 - ITAT MUMBAIBogus purchases - assessee is aggrieved by confirmation of the additions to the tune of 12.5% of the alleged bogus purchases - estimation of profits embedded in purchases is to be done which involves estimation which should be fair and honest - HELD THAT:- Keeping in view nature of goods / industry in which the assessee is dealing and keeping in view that goods involved are imported being purchased from grey market who had brought these goods in Indian market without payment of custom duties, it will be fair and reasonable to estimate profits embedded in these purchases to the tune of 25% (twenty five percentage) of the alleged purchases as income to be brought to tax over and above what was declared by the assessee in its books of accounts to cover advantage it got by way of inflated purchase prices due to buying from grey market, tax advantage by way of VAT/CST and custom duty saved on imported goods being bought from grey market who obviously brought goods in Indian territory without paying custom duties. The reliance on the assessee on other case laws to contend that addition of 2% is warranted lacks merit as each case is to be decided on its own merit keeping in view nature of product and circumstances surrounding the same.
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