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2018 (8) TMI 2019 - AT - Income TaxEstimation of income - Bogus purchases - HELD THAT:- Assessee is engaged in manufacturing and export of diamonds. During the course of assessment, assessee has filed ledger copy of Mayank Impex and Nazar Impex Pvt. Ltd., along with their confirmation which are alleged to be bogus suppliers. Copy of invoice cum delivery challans, copy of bank statements, highlighting payment made to Mayank Impex and Nazar Impex Pvt. Ltd., were also filed. Details of opening stock purchases and sales and closing stock details alongwith quantitative tally in carats. Stock Register for purchase and corresponding sales in the form of export, purchases against “H” forms and corresponding export sales forms were also filed. Since there was export of the goods alleged to be purchased through bogus suppliers, 1% addition on account of VAT is not warranted. Accordingly, we modify the order of the CIT(A) to restrict the addition to the extent of 2% of the bogus purchases in place of 3% as upheld by him.
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