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2018 (5) TMI 2065 - AT - Income TaxEstimation of income - bogus purchases - non rejection of books of accounts - HELD THAT:- In the instant case, the AO has issued notice u/s 133(6) to four parties which were returned by the postal authorities as ‘unserved’. Then he mentions that the appellant has made purchases from unrecognized parties. The estimation of profit by the AO @ 12.5% on the above amount is devoid of any substance. There is no basis for estimating income without rejecting the books of accounts. The ratio laid down in the decision in Nikunj Eximp Enterprises (P.) Ltd. [2013 (1) TMI 88 - BOMBAY HIGH COURT] is squarely applicable in the instant case. Respectfully following the same, we delete the disallowance made by the AO. - Decided in favour of assessee.
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