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2017 (11) TMI 375 - AT - Income TaxReopening of assessment - addition of bogus purchases - profit rate application - Held that:- We have observed that assessee failed to furnish confirmed copy of ledger account and current mailing address of the hawala parties. Accordingly, books of accounts were rejected u/s.145(3) by following the decision of Hon’ble Delhi High Court in the case of Jansampark Advertising And Marketing (P) Ltd.[2015 (3) TMI 410 - DELHI HIGH COURT]. After considering the fact that material so purchased have actually been used by the assessee in manufacturing activity and also the fact that assessee has furnished quantitative analysis of consumption as per tax audit report, the CIT(A) has restricted addition to the extent of 12.5%. Keeping in view of the findings recorded by CIT(A) vis-ŕ-vis G.P. rate disclosed by assessee during the year under consideration in its manufacturing activity, we modify the orders of the lower authorities and direct for upholding addition by applying profit rate of 10%. We direct accordingly.
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