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2022 (3) TMI 1405 - AT - Income TaxEstimation of income - bogus purchases - HELD THAT:- As decided in ROLLON HARDWARE INDIA PVT. LTD. case [2018 (11) TMI 1909 - ITAT MUMBAI] facts of the case indicate that assessee has made purchase from the grey market. Making purchases through the grey market gives the assessee savings on account of non-payment of tax and others at the expenses of the exchequer. In such situation in my considered opinion on the facts and circumstances of the case the 12.5% disallowance out of the bogus purchases meets the end of justice. However, in this regard Ld. counsel of the assessee has prayed that when only the profits earned by the assessee on these bogus purchase transaction is to be taxed the gross profit already shown by the assessee and offered to tax should be reduced from the standard 12.5% being directed to be disallowed on account of bogus purchase. - Decided partly in favour of assessee.
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