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2021 (9) TMI 112 - AT - Income TaxEstimation of income - Bogus purchases - purchases from unverified sources / grey market leading to suppression of profit - addition @12.5% out of the alleged non genuine purchases in each assessment year - specific information from Sales-tax department to indicate that certain purchases made by the assessee in the assessment years under dispute are non genuine - HELD THAT:- The source of purchases at all stages remained doubtful. That being the case, the claim of the assessee that purchases have been made from the declared source is unacceptable - considering the fact that assessee failed to prove the source of purchases, it can be concluded that by adopting such means the assessee has suppressed its true profits. In the aforesaid scenario, disallowance at 12.5%, being the profit element embedded in the alleged non genuine purchases, in our considered opinion, is fair and reasonable; hence, does not call for any interference - Decided against assessee.
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