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2021 (1) TMI 9 - AT - Income TaxBogus purchases - CIT(A) restricting the addition made on account of non genuine purchases at 12.5% of value of purchases as against 100% made by the Ld. AO - HELD THAT:- It is not in the dispute that the assesee had indeed made purchases from certain parties whose names appeared in the list of hawala bills maintained by the sales tax department, Government of Maharashtra, but however the assessee could not prove the genuineness of such purchases - There could not be any sales without making purchases. Hence, it could be safely presumed that assessee could have made purchases from the grey market in order to saving indirect taxes and incidental profit element thereon. CIT(A) had reasonably estimated such profit element to be at 12.5% of the value of disputed purchases, which is prevalent rate adopted by this Tribunal in series of decisions considering the nature of industry in which the assessee is engaged in, which is also approved by the Hon’ble Gujarat High Court in the case CIT vs Simith P.Sheth [2013 (10) TMI 1028 - GUJARAT HIGH COURT] - No infirmity in the order of the Ld.CIT(A) in this regard - Appeal of revenue dismissed.
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