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2020 (11) TMI 305 - AT - Income TaxEstimation of income - bogus purchases - HELD THAT:- As decided in own case we are inclined to restrict the disallowance @ 2% of alleged purchases. Therefore, we direct the AO to restrict the disallowance @ 2% of the alleged bogus purchases. Accordingly, we partly allow the ground raised by the assessee. Addition u/s 68 on undisclosed income - HELD THAT:- We notice from the records that assessee has introduced the capital in the firm and not disclosed the proper source. It is fact that assessee is in the business for so many years. But the funds were not deposited in the bank, but introduced in the business. It is the duty of the assessee to disclose the proper source. The profit declared by the assessee is also not considerable to support the contention of the assessee. If it is private source from family or friends, it should be properly disclosed. Since, no documentary evidence or any confirmations were filed before us, it is possible that assessee might have certain private savings. Therefore, we are inclined to allow 50% of the capital introduced by him as genuine. Accordingly, ground raised by assessee is partly allowed.
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