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2021 (10) TMI 949 - AT - Income TaxEstimation of income - bogus purchases - hawala transactions - HELD THAT:- As observed that the assessee allegedly purchased raw materials through the Hawala purchase bills and thereafter consumed the same in the power project sites. In such a situation, it cannot be said that the entire amount of hawala purchase bills requires addition. The Hon’ble jurisdictional High Court in Pr.CIT Vs. Paramshakti Distributors Pvt. Ltd., [2019 (7) TMI 838 - BOMBAY HIGH COURT] has sustained the addition @ 10% of the amount of purchases, being, the profit element involved therein. Thus we are of the considered view that it would be reasonable to sustain addition @ 10% of the amount of bogus purchases, being profit element involved therein. Grounds of appeal raised by the assessee are partly allowed.
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