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2019 (1) TMI 585 - AT - Income Tax12.5% disallowance on account of bogus purchase - purchase from grey market - Held that:- In the present case, the facts of the case indicate that assessee has made purchase from the grey market. Making purchases through the grey market gives the assessee savings on account of nonpayment of tax and others at the expense of the exchequer. In such situation, in our considered opinion, on the facts and circumstances of the case, 12.5 % disallowance out of the bogus purchases for the profit made thereupon meets the end of justice. Hence, the gross profit already shown by the assessee and offered to tax should be reduced from the standard 12.5% being directed to be disallowed on account of bogus purchase. This is to exclude double jeopardy to the assessee - Decided partly in favour of assessee.
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