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2020 (3) TMI 1258 - AT - Income TaxEstimation of income - Bogus purchases - Information received from the Sales Tax Department, Government of Maharashtra - as argued estimation of profit in respect of other purchases, the Assessing Officer should have applied the profit rate of 12.5% in respect of purchases made from the other two parties - HELD THAT:- Only reason the AO did not apply the profit rate @ 12.5% to the purchases made from two parties is, the assessee was unable to furnish the Bank statement reflecting the payments made towards the purchases, however, it is a fact on record that the Assessing Officer has not disputed the sales effected by the assessee. That being the case, no justification in not applying the profit rate of 12.5% in respect of the purchases as was done in case of balance purchases. Accordingly, direct the Assessing Officer to disallow 12.5% out of the purchases - Decided partly in favour of assessee.
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