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2016 (11) TMI 1683 - AT - Income TaxEstimation of income - bogus purchases - CIT-A restricted the addition @12.5% - HELD THAT:- Revenue’s plea is entirely misconceived since the said co-ordinate bench merely admitted assessee’s additional evidence to direct the CIT(A) for afresh adjudication of the issue. The lower appellate authority has duly considered the same in its order to agree with the Assessing Officer’s findings in principle that the assessee has not been able to prove genuineness of its grey cloth purchases. It thereafter is of the opinion that it is not the entire purchases but only the gross profit element therein has to be added @12.5% of the amount in question. DR fails to dispute the fact that assessee’s sales/exports of the grey cloth already stand accepted. Nor does it file before us any material to conclude that the above percentage of the addition is in any way unreasonable. We thus find no reason to interfere with the lower appellate order restricting the impugned bogus purchases addition in peculiar facts of the case. It is made clear that the above percentage shall not be treated as a precedent in any preceding or succeeding assessment year in assessee’s cases. Decided against revenue.
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