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2022 (1) TMI 728 - AT - Income TaxEstimation of income - Bogus purchases - HELD THAT:- CIT(A) has given a finding that out of disallowance of ₹ 9,04,800/- ₹ 5,04,800/- relating to M/s. Sumeet Sales has already been offered to tax in AY 2012-13 on account of creditors written off. Hence, Ld.CIT(A) has held that the same amount cannot be subject to tax twice. Hence, he has reduced this amount. Thus find that basis of this adjustment is cogent. Nothing contrary has been submitted by revenue. As regards, the rest of the disallowance, note that AO has not doubted the sales. Hence, 100% disallowance is not sustainable on the fact and circumstances of the case. Ld.CIT(A) is correct in disallowing 12.5% of the balance amount. For this proposition, we drew support from Hon’ble Bombay High Court decision in Nikunj Eximp Enterprises[2014 (7) TMI 559 - BOMBAY HIGH COURT] and Shapoorji Pallonji & Co. Ltd[2020 (3) TMI 552 - BOMBAY HIGH COURT] - Decided against revenue.
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