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2018 (2) TMI 1749 - AT - Income TaxAddition of bogus purchases - AO disallowed 100% of said purchases which is reduced to 8% by the CIT(A) on the ground that the sales were accepted by the AO and therefore only percentage addition can be made depending upon the G.P. ratio declared by the assessee - Held that:- The practice normally followed in such type of cases where bills are taken from hawala dealers, the assessee purchases goods from grey market thereby making some savings in the form of VAT and other levies. The Coordinate Benches of the Tribunal have taken a view that some percentage addition can be made in order to bring to tax the savings that the assessee might have made by purchasing the goods from grey market. In the present case the CIT(A) has taken a very reasoned view of the matter by directing the AO to assess the income at 8% of the bogus purchases. No infirmity in the order of the CIT(A) which is speaking and reasoned one and therefore we uphold the same. - Appeal of assessee dismissed.
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