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2020 (11) TMI 256 - ITAT MUMBAIEstimation of income - bogus purchases - CIT(Appeals) restricting the disallowance to 5% - HELD THAT:- As seen from the details filed by the assessee's AR during the proceedings that the assessee has declared substantial Gross profit year after year and the GP declared for the year is 14.40% percent - fastening with high gross profit on the alleged bogus purchases would increase the the Gross profit of the assessee to abnormal percentage, which is not possible in trading, particularly in small engineering items in which the assessee is engaged in a competitive market. Therefore keeping in view the totality of facts and circumstances of the case, the disallowance made by the AO is restricted to 5% of such disputed purchases correctly - Decided against revenue.
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