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2017 (8) TMI 1671 - HC - Income TaxEstimation of income - bogus purchases - HELD THAT:- CIT(Appeals) as well as Tribunal both have accepted the assessee's contention that adding the entire amount of bogus purchases would give a completely distorted figure and the gross profit would be higher than the total turnover. Such bogus purchases were for offsetting the purchases from producers and agriculturists directly who would not have the billing facility. Only question seriously paused before us was, was the Tribunal justified in adopting the gross profit rate of 8% as against 25% adopted by CIT (Appeals)? When additions are made on the basis of gross profit rates, a limited amount of estimation and gross work is always inbuilt. The assessee had pointed out that without the additions, the gross profit for the year under consideration was approximately 7%. Tribunal therefore, did not commit any error in accepting the gross profit rate of 8% on the purchases which was otherwise found not genuine. No question of law arises. The disclosure made by the assessee in his statement pertained to the bogus purchases and was therefore rightly assessed by the CIT (Appeals) and the Tribunal. No question of law arises. Tax Appeals are dismissed
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