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2018 (10) TMI 1341 - AT - Income TaxRevision u/s 263 - Addition being 12.5% of bogus purchase by A0 and not 100% - Held that:- De hors any examination or adverse inference on the sales, 100% disallowance of bogus purchase is not sustainable as per the explanation in the case of Nikunj Eximp Enterprises [2014 (7) TMI 559 - BOMBAY HIGH COURT]. Further for the defect in the purchase documentation, this tribunal in catena of decision has taken into account the various decisions including that from the Hon'ble jurisdictional High Court and has held that 12.50% of the bogus purchase if disallowed would serve the interest of the justice. We further note that the dismissal of the SLP by the Hon’ble Apex Court does not merge the dismissal of the SLP into the order of the Hon’ble Apex Court. Accordingly, in our considered opinion, the order passed by the ld. CIT is liable to be quashed As held in the case of Malabar Industrial Co. Ltd. vs. CIT [2000 (2) TMI 10 - SUPREME COURT] if there are two views possible and the A.O. has adopted one view, with which the ld. CIT is not in agreement, the order cannot be said to be liable to be visited with the revisionary order by the ld. CIT. Accordingly, the order under 263 passed by the ld. CIT is hereby quashed. - Decided in favour of assessee.
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