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 1343 - ITAT MUMBAIDisallowance of bogus purchases - Held that:- Revenue is not entitled to bring the entire sales consideration to tax, but only the profit attributable on the total unrecorded transaction can be subject to income tax. After considering the facts and rival contentions of the parties, we are of the opinion that in order to fulfil the gap of revenue leakage the disallowance of reasonable percentage of impugned purchase would meet the end of justice. Thus, we are of the opinion that disallowance @ 3% on all bogus purchases shown from the alleged hawala dealer would meet the end of justice. We direct the assessing officer accordingly. Addition on account of Foreign Exchange Forward Contract - Held that:- We have seen that the ld Commissioner (Appeals) has allowed foreign exchange fluctuation loss by following the decision of DCIT versus Bank of Bahrain [2010 (8) TMI 578 - ITAT, MUMBAI ]. We have seen that the finding of branded Commissioner (Appeals) is based on the various decision of Tribunal. Hence we do not find any illegality and infirmity in the order passed by ld Commissioner (Appeals). In the result the ground of appeal raised by revenue is dismissed.
|