Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (11) TMI 1598 - AT - Income TaxDisallowing the bogus purchases u/s. 69C - profit estimation - Held that:- From the record we found that the average Gross Profit for the last 5 years is 3.65% and average Gross Profit of subsequent 3 years from A.Y, 2012-13 to 2014-15 (all assessed u/s. 143(3) of the Act) is 5.87%, whereas the current Gross rate Profit offered by the assessee in the year under consideration is 8.15%. We found that GP rate in the A.Y.2012-13 was 5.39% and the assessment was framed u/s.143(3). In the A.Y.2013-14 it is 6.10% and in 2014-15 6.11% when the assessment was framed u/s.143(3). Thus, the average GP rate works out to 5.87% against which during the year under consideration assessee has declared GP rate of 8.15% which is much better than the GP rate declared in other years and for which assessment was framed under scrutiny assessment u/s.143(3). Keeping in view totality of facts and circumstances of the case, we restrict the addition to the extent of 2% of the GP in respect of the alleged bogus purchases. We direct accordingly.
|