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2017 (6) TMI 435 - ITAT MUMBAIAddition of bogus purchases - Held that:- We find that the facts of the case do not justify full disallowance against the impugned purchases particularly when the assessee was in possession of invoices, payments were though banking channels, quantitative details were available on record and sales turnover were not doubted by the revenue. The Tribunal, invariably, in all such cases, have taken a stand that even if presuming that all purchases were bogus, entire addition thereof was not warranted for particularly when the sales were not in dispute and the addition, if any, which has to be made in all such cases is to account for profit element embedded in such purchase transactions. Therefore, we restrict the said disallowance to 12.5% of alleged bogus purchases of ₹ 39,18,195/- which comes to ₹ 4,89,774/-. The assessee’s appeal stands partly allowed.
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