Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (11) TMI 1030 - ITAT KOLKATAAddition of bogus purchase - CIT(A) restricted addition only to the extent of profit element therein - HELD THAT:- For Revenue’s pleadings, we find that the department itself has been fair enough in not disputing the assessee’s corresponding sales in electrical equipments supplied to M/s Coal India Ltd. and its subsidiaries. It thus appears to be an instance of assessee’s purchases made from unregistered dealers. Hon’ble Bombay high court’s recent decision in PCIT vs. Mohammad Haji Adam [2019 (2) TMI 1632 - BOMBAY HIGH COURT]; after taking into consideration hon’ble apex court’s decision in N. K. Proteins Ltd. vs. DCIT [2017 (1) TMI 1090 - SC ORDER] holds that the right approach in such an instance of bogus/unverifiable purchases is that of assessment of profit element than the entire amount. We therefore decline the Revenue’s argument by adopting the very reasoning herein as well. Assessee’s grievance also deserves to be rejected as their lordships held therein that it is the gross profit and not the net profit including all operative costs available to be disallowed in case of bogus purchases. We accordingly affirm the CIT(A) findings for making subject-matter of challenge in all these four crossappeals filed at Revenue’s and assessee’s behest.
|