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2017 (9) TMI 2002 - ITAT MUMBAIEstimation of income - Bogus purchases - onus to substantiate the purchases - HELD THAT:- As there could be no sale without purchase / consumption of material since assessee was engaged as real estate developers, which is material intensive. The sales turnover achieved by the assessee has not been disputed by the revenue and the payments were through banking channels. At the same time, the assessee could not produce any confirmations from any of the 25 alleged bogus suppliers and further notices u/s 133(6) could not be served due to non-availability of any of the party at the given address, which cast serious doubt on assessee’s claim. The addition, which could be made, was to account for profit element embedded in these purchase transactions to factorize for profit element earned by assessee against possible purchase of material in the grey market and undue benefit of VAT against bogus purchases. We estimate the same @8% keeping in view the assessee’s nature of business and overall facts of the case. Accordingly, we sustain the addition to the extent of 8% of bogus purchases - Revenue’s appeal stands partly allowed.
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