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2021 (2) TMI 711 - AT - Income TaxEstimation of income - Bogus purchases - disallowance/addition to the extent of 12.5% of such bogus purchases - HELD THAT:-12.5% of such suspicious purchases have been considered the profit element embedded in such purchases. However, the estimation of rate of profit return must necessarily vary with the nature of business and no uniform yardstick can be adopted. In the present case, the appellant himself has agreed for estimation of profit element, on above referred purchases @13.71% on such suspicious purchases. In view of the facts and circumstances of the case and above discussions, the Ld. AO is directed to restrict the addition @13.71% on above referred suspicious purchases. No infirmity in the order passed by the Ld.CIT(A) in restricting the addition to 13.71% as against the entire bogus purchases disallowed by the Assessing Officer. SHRI SIMIT P SHETH L/R OF SHRI PANKAJ J SHETH C/O MANISH G SHAH case followed - [2012 (2) TMI 598 - ITAT AHMEDABAD] - Grounds raised by the revenue are dismissed.
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