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2021 (1) TMI 1002 - AT - Income TaxEstimation of income - bogus purchases - CIT-A restricted addition at 12.5% being profit earned by assessee on unexplained/unverified purchases - HELD THAT:- We noticed that the CIT(A) has applied profit rate at 12.5% by following the decision in the case of CIT vs. Simit P. Sheth [2013 (10) TMI 1028 - GUJARAT HIGH COURT] wherein as held that where purchases were not bogus but were made from parties other than those mentioned in the books of account, not entire purchase price but only profit element embedded in such purchases can be added to income of the assessee. As the CIT(A) has applied a reasonable profit rate, we do not want to interfere in the same. Hence, the order of CIT(A) is upheld in both the years and appeals of assessee are dismissed.
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