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2017 (11) TMI 321 - AT - Income TaxBogus purchases - quantification of disallowance on account of bogus purchase - Held that:- AO himself has admitted the fact of existence of purchase albeit from unregistered dealers who do not have bill books. Simultaneously, the corresponding sales have also not been disputed. Noticeably, the assessee has recorded total sales to the tune of ₹ 323.43 lakhs during the year and recorded purchase of ₹ 401.88 lakhs including impugned purchases of ₹ 209.49 lakhs from M/s.Vishal Traders. Apparently, in the absence of actual purchases made from unknown unregistered dealers, it will not be possible to record the staggering sales. Thus, the fact of purchases made from unidentified other source cannot be denied on wholesome basis. Therefore, in our view, the CIT(A) has correctly appreciated the facts and granted relief towards actual purchases. We hold that the CIT(A) has rightly drawn its conclusion and estimated 25% of the value of the bogus purchases as unaccounted income of the assessee. We thus do not find any potency in the plea of the assessee for further relief towards downward estimation.
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