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2019 (10) TMI 1122 - AT - Income TaxBogus purchases - CIT(A) restricted the addition to the extent of 25% of the bogus purchase - HELD THAT:- The assessee is in the profession of Real Estate Development. It is settled that 100% of the addition is not justifiable. In this regard, we find support of law settled in case CIT Vs.Nikunj Eximpt Enterprises (P) Ltd. [2013 (1) TMI 88 - BOMBAY HIGH COURT]. In case CIT Vs. Simit P. Sheth [2013 (10) TMI 1028 - GUJARAT HIGH COURT] it is held that the addition is required to be added to the income of the assessee to the extent of income embedded in the bogus purchase. The sale is not disputed. On seeing the facts and circumstances of the case, we are of the view that the addition to the extent of 25% of the bogus purchase is very high, therefore, we restrict the addition of bogus purchase to the extent of 12.5% of the bogus purchase. - Decided in favour of the assessee against the revenue.
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