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2017 (4) TMI 1496 - AT - Income TaxEstimation of income - bogus purchases - HELD THAT:- AO ought to have disallowed only the profit element instead of the entire purchases. We notice from the case file that the assessee had quoted umpteen number of judicial precedents in this regard. Hon’ble jurisdictional high court’s decision in Sanjay Oil Cake Industries [2008 (3) TMI 323 - GUJARAT HIGH COURT] supports this latter plea. Larger interest of justice would be served in case only the profit element @15% in the above bogus purchases is disallowed/added rather than the entire amount. Whilst concluding so, it is made clear that we have duly taken into account the fact that the assessee is a trader than manufacturer so as to arrive at the above disallowance percentage. We accordingly direct the Assessing Officer to restrict the impugned disallowance @15%.
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