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2020 (8) TMI 267 - AT - Income TaxEstimation of Income - Bogus purchases - correct rate of profit - HELD THAT:- ITAT, Mumbai, in number of cases had considered an identical issue and depending upon facts of each case, directed the Ld.AO to estimate gross profit of 10% to 15% on total alleged bogus purchases. In this case, considering the nature of business of the assessee AO has made 100% addition, whereas the ld. CIT(A) has scaled down addition to 8% profit on alleged bogus purchases. 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. As consistent with view taken by the Co-ordinate Bench in number of cases, including in assessee own case for AY 2009-10, we are of the considered opinion that 8% rate of profit adopted by the ld. CIT(A) appears to be reasonable and accordingly, we are inclined to uphold the findings of the ld. CIT(A) and dismiss appeal filed by the Revenue.
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