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2020 (10) TMI 876 - AT - Income TaxEstimation of income - bogus purchases - NP estimation - CIT-A directed the AO to estimate profit @12.5% on the disputed purchases - HELD THAT:- Assessee has filed before the AO copies of (i) bank statements for the financial year 2010- 11, evidencing the payments made to these parties; (ii) ledger account of all the parties; (iii) purchase invoices from these parties and (iv) sale invoices as issued by the assessee against the purchases made. AO could have made further verifications /enquiries. Without making any verification /enquiry, the AO has made the full addition. In such a situation like the above one, the Ld.CIT(A) has rightly relied on the judgment of the Hon’ble Gujarat High Court in Bholonath Poly Fab (P) Ltd. [2013 (10) TMI 933 - GUJARAT HIGH COURT] and directed the AO to estimate the profit @ 12.5% embedded in the disputed purchases - Decided against revenue.
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