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2021 (8) TMI 275 - AT - Income TaxRejection of books of accounts - estimating G.P. on unproved purchases - HELD THAT:- Undisputedly, the assessee failed to discharge his onus in proving genuineness of suspicious dealers and purchases made from them. Assessing Officer has rejected the books of assessee and thereafter estimated G.P. on bogus purchases. It would be relevant to mention here that the Assessing Officer while estimating G.P. on unproved purchases has neither disturbed the G.P. declared by the assessee on regular purchases nor sales turnover declared by the assessee. Therefore, no prejudice is caused to the assessee in so far regular/undisputed purchases. The ground No. 3 of appeal is without any merit hence, dismissed. Estimation of income - Bogus purchases - HELD THAT:- The assessee has declared over all G.P. of 6.24%. The Assessing Officer has estimated G.P. on bogus purchases at 12.5%. The CIT(A) has upheld the same. In our considered opinion estimation of G.P. at 12.5% is on higher side. To meet the ends of justice suppressed profit margin on bogus purchases is restricted to 7%.
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