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2019 (9) TMI 488 - AT - Income TaxBogus purchases - estimation of GP - CIT-A restricted the addition by estimating the income of the assessee on the basis of the average GP rate of past three years including the current year at 8.66% - HELD THAT:- We note that in case of M/s. Kanchwala Gems vs. JCIT [2006 (12) TMI 83 - SUPREME COURT] the income was estimated by taking the GP on the entire sales and not an addition was made to the returned income by making the disallowance of unverifiable purchases. In case of M/s. N.K. Proteins Ltd. vs. DCIT [2017 (1) TMI 1090 - SC ORDER] it was a case of addition based on inflated purchases and not the estimation of income by rejecting the books of account. Therefore, those decisions relied upon by the Revenue would not help in the present case when the AO has rejected the books of account of the assessee. Accordingly, following the earlier order of this Tribunal, we do not find any error or illegality in the impugned order of the ld. CIT (A). Appeal of the revenue is dismissed.
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