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2017 (11) TMI 1232 - AT - Income TaxDisallowance on account of bogus purchase - Held that:- The facts of the present case indicate that assessee has made purchase from the grey market. Making purchase through the grey market gives the assessee savings on account of non-payment of tax and others at the expense of the exchequer. In similar situation on the facts and circumstance of the case a disallowance of 12.5% of the bogus purchase has been considered to meet the ends of justice in a number of cases at the Mumbai Tribunal following Hon’ble Gujarat High Court decision in the case of Simit P.Seth (2013 (10) TMI 1028 - GUJARAT HIGH COURT). Accordingly, hold that the disallowance in this case should be restricted to 12.5% of the bogus purchase. - Decided partly in favour of assessee.
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