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2017 (10) TMI 529 - AT - Income TaxBogus purchases - assessee has availed hawalas entries - Held that:- As find that the assessee has availed hawalas entries in respect of purchases to the tune of ₹ 2,91,48,000/-. But in such type of cases, the assessee purchases good from gray market at cheaper rates thus gets additional benefit by avoiding VAT, and other in levies. The assessee has already declared GP 18.21% during the year. Under these circumstances we are of the considered opinion that the addition sustained at the rate of 22% of the total purchases is excessive and unreasonable and keeping in nature of business of the assessee and GP declared by the assessee during the year and also the decisions of the Coordinate Benches wherein the additions are sustained to the tune of 5% to 12.5% there should be some reasonable disallowance. To maintain the consistency with the orders passed by the Tribunal earlier, we are inclined to sustain 12.5% of the total purchases. The assessee gets relief of 12.5%. The appeal of the assessee is partly allowed.
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