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2018 (9) TMI 779 - AT - Income TaxDisallowance of bogus purchases - CIT(A) has applied the profit rate at the rate of 15%, which according to us is on higher side going by the nature of business of the assessee i.e. dealing in gift items - Held that:- Additional profit rate of 10% of unproved bogus purchases be further added to income of the assessee which will meet the end of justice in view of the decision of Hon’ble Gujarat High Court in the case of CIT vs. Smith P. Seth [2013 (10) TMI 1028 - GUJARAT HIGH COURT]. Hence, we direct the AO to recompute the profit after applying additional profit rate of 10% on unproved bogus purchases and compute the income accordingly. The appeal of the assessee is partly allowed.
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