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2018 (10) TMI 798 - ITAT MUMBAIAddition made towards bogus purchases - addition based on the information of the Sales Tax Department in their official website and the information from the Investigation Wing - CIT-A estimated the profit element @ 25% - Held that:- In similar type of cases the Coordinate Benches have taken a view that the percentage addition should be made ranging from 2 to 12.5% depending upon the facts and circumstances of the case in order to bring to tax the savings which the assessee has made by the reason of purchase of goods from grey market when the sales/consumption is undisputed. In the present case the sales were not disputed and the method of accounting followed by the assessee is project completion, therefore, we are inclined to estimate the profit on the above purchases at 3%. Accordingly appeal of the assessee is partly allowed without deciding the issue technically and legally. Thus we are inclined to follow the order of the Tribunal in assessee’s group case and direct the Assessing Officer to restrict the disallowance of purchases @3%. - decided partly in favour of assessee.
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