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2018 (1) TMI 1317 - ITAT, MUMBAIAddition of bogus purchases - Held that:- AO has failed to bring on record any evidence to justify the addition whereas the CIT(A) has taken a reasonable view of the matter. But when the issue of bogus purchases is involved some addition has to be made thereby accepting the alternative prayer of the ld AR. In the present case the AO has completely failed in carrying out any investigation and therefore only addition based upon some small percentage would be justified. Considering the facts of the case in totality, we are of the opinion that it would be reasonable and fair to make an addition of 2.5% of the bogus purchases to the income of the assessee. Accordingly, we direct the AO to add 2.5% of the bogus purchases by setting aside the order of the CIT(A).
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