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2017 (10) TMI 1451 - AT - Income TaxBogus purchases u/s 69C - AO estimated profit on alleged bogus purchases at 12.5% - CIT(A) enhancing the addition of bogus purchases to 100% - HELD THAT:- There is merit in the contentions of A.R. Since the quantity details have been reconciled and since it has also been certified by the tax auditor, in my view, there is no necessity to disallow entire amount of alleged bogus purchases. As noticed that the AO had estimated the profit element embedded in the bogus purchases at 12.50% and our view, it appears to be reasonable. Accordingly set aside the order passed by CIT(A) on this issue and direct the AO to sustain addition to the extent of 12.50% of the value of purchases. - Appeal of the assessee is partly allowed.
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