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2017 (5) TMI 901 - AT - Income TaxBogus purchases - Estimation of possible profit out of purchases made through non-genuine parties - Held that:- Since purchases were not bogus but were made from parties other than those mentioned in the books of account, only profit element embedded in such purchases could be added to assessee’s income. See CIT vs. Simit P. Seth [2013 (10) TMI 1028 - GUJARAT HIGH COURT ] In view of the above, the order of the learned CIT(A) directing the AO to estimate 12.5% of the bogus purchases of ₹ 25,67,420/- and tax only the profit embedded therein of ₹ 3,20,927/- is upheld. - Decided against assessee.
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