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2017 (11) TMI 1941 - AT - Income TaxEstimation of income - Bogus purchases - CIT(A) applying 12.50% of the purchases as profit embedded on the purchase - HELD THAT:- The sale is not disputed. The assessee might have purchased the said material from the grey market to avoid the Sales Tax, VAT and Excise etc. The profit embedded in the said purchase has been taken into consideration to the extent of 12.5% in addition to the regular profit offered to tax. CIT(A) has also considered the number of cases while deciding the matter of controversy but the yardstick taken into consideration by the CIT(A) in the case of of CIT Vs. Simit Sheth [2013 (10) TMI 1028 - GUJARAT HIGH COURT] the percentage of profit embedded into the purchase to the extent of 12.5% has rightly been taken into consideration to the facts and circumstances of the case. Accordingly, we are of the view that the CIT(A) has decided the matter of controversy judiciously and correctly which is not required to interfere with at this appellate stage. Accordingly, this issue is decided in favour of the revenue against the assessee.
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