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2021 (1) TMI 607 - AT - Income TaxDisallowance of non-genuine purchases - CIT- A restricting the Gross Profit to 5%, restricted the disallowance of bogus purchases to the of 12.5% only - HELD THAT:- CIT(A) has not referred GP for earlier or subsequent years or Net Profit in assessee’s own case. CIT(A) in a single sentence held that the assessee has merely shown Gross Profit of 1.66% of sales. In our view, in absence of any material evidence the ld.CIT(A) ought to have followed the decision of Mayank Diamonds Pvt Ltd. [2014 (11) TMI 812 - GUJARAT HIGH COURT] . Therefore, we direct the AO to restrict the disallowance to 5% of the gross profit, accordingly, appeal of the Revenue is partly allowed.
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