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2021 (12) TMI 52 - ITAT MUMBAIEstimation of income - bogus purchases - CIT-A estimating profit @12.5% on alleged bogus purchases - HELD THAT:- Assessee is trading in fabrics and that the purchases made from the aforesaid five suppliers were in respect of purchases of fabrics. It is not in dispute that the sales made out of purchases made from aforesaid five suppliers were not doubted by the Revenue. It is not in dispute that purchase of fabrics does not get eligible for levy of VAT. Hence, the profit element to be estimated on the value of ingenuine purchases should certainly exclude the VAT portion in the instant case and only incidental benefit that assessee derives by making purchases out of cash in the grey market should be ultimately brought to tax. As relying on M/S. MAX REALITIES LLP [2021 (8) TMI 861 - ITAT MUMBAI] we direct the ld. AO to add only 1% of value of ingenuine purchases - Appeal of the assessee is partly allowed.
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