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2017 (11) TMI 1135 - AT - Income TaxBogus purchases - profit estimation - non maintenance of proper books of accounts - net profit of 5% of the turnover was added as income to the total income of the assessee - Held that:- Admittedly, in such type of cases, there is no option but to estimate the profit which depends upon the subjective/objective approach of an individual and the material facts available on record. Considering the material facts, available on record, we find that, to plug the revenue leakage, the Ld. Assessing Officer has taken a justifiable approach. Before this Tribunal, as mentioned earlier, on the appointed date, the assessee neither presented itself, nor moved any adjournment petition, to justify the conclusion drawn in the impugned order. We find that the factual finding recorded in the assessment order has not been controverted by the First Appellate Authority. Normally, in such type of case, the Tribunal and the Hon'ble jurisdictional High Court has adopted the profit at the rate of 12.5% of the bogus purchases. However, considering the material facts, the Ld. Assessing Officer has already taken a justified view, which deserves to be upheld. Therefore, we reverse the order of the First Appellate Authority and upheld the conclusion drawn in the assessment order on the issues in hand. The appeal of the Revenue, is therefore, allowed.
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