Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (7) TMI 423 - AT - Income TaxUnexplained expenditure u/s.69C - bogus purchase bills - G.P. determination - Held that:- AO has made addition in respect of bogus purchases and found that notices issued to all these bogus suppliers u/s.133 (6) were returned undelivered by postal authorities and assessee also failed to produce the parties before the AO. However, the CIT(A) has not dealt with this observation of AO and without controverting AO’s finding deleted entire addition made on account of bogus purchases. From the record, we found that assessee had shown GP in the A.Y.2008-09 at 7.53% and in A.Y.2009-10 at 7.51%. However during the year under consideration, GP shown by the assessee was only 6.09% which is much lower than the GP shown in the earlier year. However, no reasons were assigned for decline of GP during the year under consideration. Thus we restrict the addition to the extent of 5% of the bogus purchase so as to fulfill the leakage in revenue - Decided partly in favour of revenue.
|