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2017 (6) TMI 64 - AT - Income TaxAddition on account of bogus purchases - Held that:- From the documents placed on record as find that the purchased material has been used in the business of the Assessee in manufacturing cable reeling drums and cable drag chain. The same were subsequently sold to the various parties and income received from the said transaction was offered for tax. The Assessee to substantiate the genuineness of the purchases furnished purchase bills, sales bills, bank statement, party wise purchase and sales details before the A.O. Gross Profit of the impugned assessment year is in consonance of the Gross Profit declared for the earlier and subsequent assessment years. Under these facts and circumstances, relying on the decision of Bombay High Court in case of Nikam Exims Pvt. Ltd.[2013 (1) TMI 88 - BOMBAY HIGH COURT] hold that addition to the extent of 10% of such bogus purchase will serve the purpose, keeping in view the nature of trade being carried on by the assessee vis-a-vis other facts and circumstances of the case. - Decided partly in favour of assessee.
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