Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (8) TMI 1846 - AT - Income TaxEstimation of income - bogus purchases - HELD THAT:- Dispute remains only with regard to the source from which the assessee purchased the goods. The addition of the entire purchase is not justified. Therefore, to that extent, Commissioner (Appeals) was correct in estimating the profit on the non-genuine purchases for the purpose of addition. Reasonableness of estimating profit @ 12.5%, after over all consideration of facts and material on record, the nature of business carried on by the assessee as well as the gross profit margin earned, we are of the view that estimation of profit @ 6% of the non-genuine purchases would be reasonable. Accordingly, we direct the Assessing Officer to restrict the addition in both the assessment years under appeal to 6% of the non-genuine purchases. Grounds raised by the Revenue are dismissed and grounds raised by the assessee are partly allowed.
|