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2021 (12) TMI 400 - ITAT MUMBAIEstimation of income - Bogus purchases - Case was selected for scrutiny by issuing notice u/s. 143(2) of the Act. Assessing Officer based on information from the Sales Tax Department, Mumbai about the accommodation entries provided by various dealers and assessee was also one of the beneficiary from those dealers - HELD THAT:- There should be an estimation of profit element from these purchases and should be estimated reasonably as the assessee could not conclusively prove that the purchases made are from the parties as claimed, especially in the absence of any confirmations from them. Taking the totality of facts and circumstances, keeping in view the nature of business of the assessee i.e. trader in Bright Steel Bars and Wire rods, it would be justified if the profit element embedded in those purchases are estimated at 12.5% - Appeal of the assessee is partly allowed.
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