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2022 (1) TMI 89 - AT - Income TaxEstimation of income - bogus purchases - Lower authorities have allowed 75% of the very purchases in the assessment order itself - HELD THAT:- This assessee is a trader in TMT Bars with corresponding sales involving M/s. Nimbus Industries Ltd. qua the very purchase(s) difference. It had the difference amount admitted as business income and stood assessed as such. Coupled with this, this assessee has filed detailed paper book containing all the relevant details of the alleged bogus entity M/s. Highland Industries Ltd. along with the fact that it had paid the corresponding purchase amount through banking channel only. The Revenue's endeavor herein seeking to restore 25% of purchases on estimation basis thereby accepting the balance 75% component in case to the very supplier as well as in assessing 100% sales therefrom as correct suffers from mutually contradictory stands. We thus conclude that the CIT(A) has rightly restricted the impugned 25% bogus purchases disallowed to the extent of profit element only going by the corresponding book results which have nowhere been rejected till date. The Revenue's sole substantive grievance is therefore rejected.
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