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2021 (4) TMI 1332 - AT - Income TaxEstimation of income - Bogus purchases - CIT(A) has restricted the addition on the basis of the decision of the earlier year for the A.Y.2009-10 in which the addition was restricted to the extent of 5% of the bogus purchases - HELD THAT:- In the instant case, the assessee has already declared 4.38% profit on the purchase. The total addition comes to the extent of 9.38% which seems high. Since the addition has been restricted to the extent of 3% of the bogus purchase, therefore, the earlier profit to the extent of 4.38% is liable to be set off. Accordingly, we set aside the finding of the CIT(A) on the issue and restrict the addition to the extent of 5% of the bogus purchase only which includes 4.38% profit upon the bogus purchase declared by the assessee. Accordingly, we restricted the addition to the extent of 5% of the total bogus purchase and decide these issues in favour of the assessee against the revenue.
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