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2020 (4) TMI 325 - AT - Income TaxBogus purchases - CIT(A) restricting the addition to the extent of 12.5% - HELD THAT:- Although, both authorities have taken different rate of profit for estimation of income from alleged bogus purchase, but no one could support said rate of gross profit with necessary evidences or any comparable cases. Admittedly, the assessee is in the business of trading in drugs and medicins and the retail profit margin in this kind of business is ranging between 10% to 20%. Therefore, we are of the considered view that the ld. CIT(A) has taken one of the possible method to settle dispute between the parties and estimated 12.50% gross profit on alleged bogus purchases. Hence, we are inclined to uphold order of the ld. CIT(A) and dismiss appeal filed by the Revenue..
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