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2017 (8) TMI 322 - AT - Income TaxAddition made on account of bogus purchases - Held that:- Considering the profit rate declared by the assessee in earlier years and subsequent years, the CIT(A) after recording detailed finding reached to the conclusion that addition to the extent of 12.5% of the bogus purchase will serve the purpose of revenue leakage. As found that CIT(A) had applied various judicial pronouncements to the facts of the instant case and also the decision in the case of H M Esufali H Abdulla [1973 (4) TMI 49 - SUPREME Court] accordingly reached to the conclusion that disallowance of 12.5% of the bogus purchases will compensate for the profit so suppressed by the assessee. The detailed finding so recorded by the CIT(A) has not been controverted, accordingly, no valid reason to interfere in the finding so recorded by the CIT(A) upholding the addition to the extent of 12.5% of bogus purchases.
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