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2020 (3) TMI 1161 - AT - Income TaxBogus purchases - purchases made from grey market - HELD THAT:- Since assessee has already offered GP of 26% on the purchases and sales booked as per the P& Account which has not been tinkered with by the AO/Ld. CIT(A) and that as the assessee has also offered the cost of procuring the accommodation bills amounting to ₹ 56.75 lakhs @ 4% which comes to ₹ 2.33 lakhs in the IDS and offered tax for the undisclosed amount. So according to us, no more addition is warranted because when this IDS tax also is added to the GP of the assessee, then it will come to 30% GP. Therefore, no separate addition on the undisclosed amount of profit is warranted since it is not the case that AO/Ld. CIT(A) could unearth any hidden profit which was discovered as investments/cash/bullion etc. so in the aforesaid facts and circumstances, the addition made is deleted. - Decided in favour of assessee
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