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2018 (12) TMI 815 - ITAT MUMBAIDisallowance of alleged bogus the purchases - CIT-A retained to the extent of 14.84% i.e. to the extent of GP - Held that:- The sales turnover achieved by the assessee has not been disputed by the revenue and the payments to suppliers were through banking channels. The assessee was in possession of primary purchases documents. The survey proceedings casted serious doubts on the purchases transactions being carried out by the assessee. The key personnel, during survey proceedings, admitted discrepancies in the purchase transactions. The notices u/s 133(6) issued to all the suppliers elicited no response and the spot verification revealed that none of the supplier existed at the given address. All these factors cast serious doubts on assessee’s claim. Both the lower authorities, in our opinion, clinched the issue in the proper perspective and proceeded to make estimation against the same. Considering the nature of assessee’s business, the estimation, in our opinion, was on the higher side. Upon perusal of appellate orders for AYs 2009-10 & 2010-11 in assessee’s own case, we find that the Ld. first appellate authority has adopted a uniform rate of 7% while estimating such additions for all the group concerns. Keeping in view the same, we reduce the estimated additions to 7% of alleged bogus purchases.
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