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2012 (10) TMI 278 - AT - Income TaxDis-allowance on account of payment of bogus purchases made - Held that:- Though assessee has recorded bogus purchases in the books of account based on accommodation bill received, however in view of the maintenance of quantitative details having followed the practice of purchasing goods from the grey market but sales have duly been recorded; would be with the intention to gain some benefit. By adopting this illicit practice the traders have managed to save few percentage of cess/tax being levied on the purchases if made through registered dealers. Keeping that fact in mind that ultimately a reasonable percentage of profit is to be taxed on the sales executed, the Respected Coordinate Benches have arrived at a conclusion to disallow 12.5% of the purchases. Direction given to restrict the disallowance at 12.5% of the impugned purchases - Decided partly in favor of assessee
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