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2021 (3) TMI 505 - AT - Income TaxEstimation of income - bogus purchases - CIT-A confirmed the addition to to 12.5%- HELD THAT:- In different trade items, there may be different rate of profit. Whenever any profit is being estimated, the element of guesswork would always be involved. In the case Simit P. Sheth [2013 (10) TMI 1028 - GUJARAT HIGH COURT]on an analysis of the material, Tribunal drew an inference that in the trade of steel profit at the rate of 12.5% may be reasonable profit when the assessee has procured material from different sources and bills from different sources. This formation of opinion was not disturbed by the Hon’ble High Court. Therefore, no infirmity in the order passed by the Ld.CIT(A) in restricting the addition to 12.5% as against the entire bogus purchases disallowed by the Assessing Officer. Grounds raised by the revenue are dismissed.
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