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2017 (9) TMI 568 - ITAT MUMBAIDisallowance of unexplained expenses/ bogus purchases @ 30% - N.P. determination - Held that:- As we have already noticed that neither the AO nor the ld. CIT(A) examined the G.P. ratio or N.P. ratio of assessee for earlier year and in subsequent year. Thus, after considering the facts of the present case, rival submissions of ld. representative of the parties, we are of the opinion that in order to fill up the gap of revenue leakage, the disallowance of 12.5% of impugned purchases would meet the end of justice. Thus, the AO is directed to restrict the disallowance @ 12.5% of total purchases impugned/bogus/disputed purchases from these two parties. Hence, this ground of appeal is partly allowed. In the result, appeal of the assessee is partly allowed.
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