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2017 (10) TMI 584 - AT - Income TaxBogus purchases addition - Sales Tax Department in its enquiry have found that parties to be providing bogus accommodation entries - Held that:- Facts and circumstances of the case clearly prove that assessee has booked bogus purchases. The assessee has made purchase from grey market. Making purchases from the grey market gives the assessee selling on account of non-payment of tax and others at the expense of the exchequer. In such circumstances, following the precedent from Hon’ble Gujarat High Court decision in the case of Simit P. Sheth (2013 (10) TMI 1028 - GUJARAT HIGH COURT) we are of the considered opinion that 12.5% disallowance in this case would serve the interest of justice. Accordingly, we modify the order of the learned CIT(A) and hold that disallowance in this case should be restricted to 12.5% of the bogus purchases.
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