Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (9) TMI 648 - AT - Income TaxBogus Purchases - profit estimation with respect to the alleged unproved purchases - Held that:- Though the CIT(A) has referred to the estimation of profit ranging from 12.50% to 25%, so however, he has not given any particular reason as to why he has resorted to the estimation @17.50%. On the contrary, in similar situations, the Mumbai benches of the Tribunal have estimated the profit @ 12.50% in the case of similarly placed asessees engaged in the business of trading in ferrous and non-ferrous metals. Therefore, in my view, in the fitness of things, the estimation of 17.50% adopted by the CIT(A) deserves to be reduced to 12.50%. Accordingly, the Assessing Officer is directed to recompute the addition considering the estimation of profit at 12.50% on the purchases made from the impugned parties, of course, after reducing the 5% G.P, as directed by the CIT(A). Thus, on this aspect, assessee partly succeeds.
|