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2018 (4) TMI 690 - ITAT MUMBAIG.P. estimation on bogus purchases - Held that:- End of justice will be met in this case, if GP ratio of 10% on alleged bogus purchase is added to income of the assessee against which credit for the declared GP ratio will be granted by AO. In a nutshell, the AO is directed to restrict the disallowance of alleged purchase of ₹ 7,16,98,624/- by estimating the same at 3.7% (10% minus 6.30%) for the AY 2006-07. Facts being identical our decision for the AY 2006-07 applies mutatis mutandis to AY 2007-08. Accordingly, the AO would estimate the profit element embedded in the purchase of ₹ 22,11,65,706/- @ 3.37% (10% minus 6.63%) for A.Y.2007-08. We make it clear that we are not disturbing the additional income of ₹ 45,17,013/- offered by the assessee for A.Y. 2006-07 and ₹ 1,46,63,286/- for A.Y. 2007-08.
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