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2021 (10) TMI 261 - AT - Income TaxEstimation of income - Bogus purchases - HELD THAT:- Simply because the parties were not produced the entire purchases cannot be added as held by the Bombay High Court in the case of CIT v. Nikunj Eximp [2013 (1) TMI 88 - BOMBAY HIGH COURT]. However, at the same time keeping in view the nature of business of the assessee and the fact that the assessee is making some local purchases without any transportation bills, lorry receipts etc, the possibility of making purchases in gray market on cash cannot be ruled out. Thus following the decision of the Hon'ble Gujarat High Court in the case of CIT v. Simit P. Seth[2013 (10) TMI 1028 - GUJARAT HIGH COURT]I direct the Assessing Officer to restrict the disallowance/addition to 12.5% of the bogus purchases. - Decided partly in favour of assessee.
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