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2017 (9) TMI 368 - AT - Income TaxBogus purchases - Addition under section 69C - estimating G.P. @ 25% - Held that:- The addition at the rate of 4% would be reasonable and justified in the present circumstances while upholding the rejection of books of accounts. Accordingly, the order of the ld.CIT(A) is modified as above and the AO is directed accordingly. Reopening of assessment u/s 147/148 - Held that:- We find that the reopening was based on valid reasons as the AO has received information from the Sales Tax Department, GOM and there was no doubt that the assessee was availing bogus entries for purchases from four parties as stated herein above without purchasing any actual material. Only thereafter recording due satisfaction, the AO reopened the case u/s 147/148 of the Act. Under we are of the considered view that the reopening in such circumstances is quite valid as there were several reasons to justify the reopening. Accordingly, ground of reopening of the assessment taken by the assessee is dismissed.
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