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2019 (3) TMI 1079 - AT - Income TaxBogus purchases u/s 69C - scrutiny assessment - assessee explained that only profit element can be added against the addition made by the AO - HELD THAT:- The assessee is engaged in the business of construction and development work. The case of the assessee was selected for scrutiny, therefore, notice u/s 143(2) and thereafter notice u/s 142(1) were issued to the assessee. The assessee filed the copies of audit report, profit and loss account and balance sheet etc. Admittedly, there cannot be any development work/construction work without using the material, therefore, in such type of cases, the profit element can be added. At the same time, it was the duty of the assessee to prove consumption. Thus, considering the totality of facts, we deem it appropriate to sustain the addition @ 25% (minus the GP already declared by the assessee) of such bogus purchases as against the total addition made by the ld. Assessing Officer. Thus, the appeal of the assessee is partly allowed.
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