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2017 (10) TMI 162 - AT - Income TaxBogus purchases - estimation of profit - Held that:- The assessee has not furnished documents like delivery challans, transport receipts, stock register etc. to prove the transportation of material from the place of the impugned suppliers to the place of assessee. As noticed that the assessee has also failed to furnish confirmation letters obtained from the suppliers in order to prove the genuineness of the purchases. Since the assessee has reconciled the purchases with sales, tax authorities have presumed that the assessee would have sourced material from some other source and have accordingly estimated the profit element embedded therein. The Assessing Officer had estimated the profit at 12.5% which was reduced to 6.5% by the learned CIT(A). In the facts and circumstances of the case, estimate of 6.5% of the value of alleged bogus purchases is reasonable and hence decision rendered by Ld CIT(A) does not call for any interference. Accordingly, uphold the order of the learned CIT(A). - Decided against assessee.
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