Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (5) TMI 762 - ITAT MUMBAIEstimation of income - bogus purchases - CIT(A) was justified in restricting the profit element embedded in respect of alleged bogus purchases at 3% as against 9% made by the ld. AO - HELD THAT:- We find that this Tribunal going by the gross profit ratio of the assessee in earlier years had decided in assessee’s own case [2021 (4) TMI 799 - ITAT MUMBAI] in similar facts and circumstances by adopting the profit element at 1% of value of ingenuine purchases. Respectfully following the said decision, we hold that 1% profit element on the value of ingenuine purchases would meet the ends of justice. Disallowance on an estimated basis at 10% on conveyance, telephone and travelling expenses - HELD THAT:- AO in the assessment proceedings had observed that most of the expenses claimed are not verifiable and that the personal element of expenses cannot be ruled out. Accordingly, he proceeded to estimate 10% of the expenses towards personal element and unverifiable nature and made disallowance thereon in the assessment, which was confirmed by the ld. CIT(A) in the first appeal. We find that the ld. CIT(A) had observed that assessee could not prove with any concrete evidence that there was no personal element involved. Even before us, the assessee was not able to justify the same and infact, no arguments were even advanced by the ld. AR before us with regard to said disallowance. In view of this, the ground No.3 raised by the assessee is hereby dismissed.
|