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2017 (11) TMI 1053 - AT - Income Tax
Bogus purchases - addition made u/s 69C - profit estimation - Held that:- Disallowance were made by the assessee on the plea that the quantitative details were not furnished by the assessee on the plea that the purchases made from nine tainted parties were in fact sold. Admittedly, there cannot be sale without purchases and the G.P. ratio for Financial Year 2008-09 (@ 15.38%), the G.P. of Assessment Year 2007-08 (@ 15.53%) and of Assessment Year 2009-10 (@ 15.59%), clearly indicates that the First Appellate Authority has justifiably, under the facts and the circumstances of the case adopted the disallowance at the rate of 15% of the alleged bogus purchases. Even otherwise, the case of the assessee/Revenue is also covered by the decision from Hon'ble jurisdictional High Court in the case of M/s Nikunj Exim Enterprises Pvt. Ltd.(2013 (1) TMI 88 - BOMBAY HIGH COURT) and CIT vs Smit P. Seth (2013 (10) TMI 1028 - GUJARAT HIGH COURT). This view of the Ld. Commissioner of Income Tax (Appeal) will plug the revenue leakage, therefore, we affirm the stand of the Ld. Commissioner of Income Tax (Appeal), resulting into dismissal of appeal, filed by the Revenue.