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2018 (7) TMI 1859 - AT - Income TaxDisallowance of bogus purchases - Held that:- Assessee furnished the purchase bills and the evidences for payment to the suppliers through banking channels. Copies of the bank statements are evident in the records. Nowhere it is mentioned that the assessee failed to prove the trail of goods to the premises of the assessee. It is not the case of mere buying the accommodation entries through the entry operators but there is an undisputed fact of buying the equivalent purchases from the grey market. Therefore, it is a case of not offering the relevant profits properly in the return of income. Therefore, the CIT(A)’s decision in restricting the disallowance to 15% on account of such purchases, despite the books results are already offered by the assessee, is fair and reasonable. Accordingly, the grounds raised by the assessee are dismissed.
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