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2019 (3) TMI 1544 - AT - Income TaxBogus purchases - disallowance of purchases @ 2% confirmed by CIT(A) - HELD THAT:- The transaction was not effected with VAT and profit embedded to the bogus purchase was added to the income of the assessee in view of the law settled in case Simit P. Sheth [2013 (10) TMI 1028 - GUJARAT HIGH COURT] mentioned above. The CIT(A) has also considered the profit ratio of diamond industries in which the 2% profit was assessed for trading activity and 3% for manufacturing activities and 2.5% across the board. Operating profit in diamond trading on international transaction was assessed by TPO around1.75% to 3%. The CIT(A) has also considered the profit ratio of the assessee in the preceding year also. The facts are not distinguishable at this stage. 100% addition is a very hard decision which is not sustainable by law settled Simit P. Sheth(supra) and other law mentioned by CIT(A) in his order. The facts are not distinguishable at this stage. Taking into account all the facts and circumstances, we are of the that the CIT(A) has decided the matter of controversy judiciously and correctly which is not liable to be interfere with - Decided against revenue.
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