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2022 (7) TMI 791 - AT - Income TaxEstimation of income - Bogus purchases - HELD THAT:- In this case the assessee has filed the order of learned CIT(A) in assessee’s own case for A.Y. 2007-08 wherein learned CIT(A) has held that AO has analyzed the transaction through assessment order and established that there was no genuine purchase of the diamond and estimated profit @12.5 % in the case of the Hon’ble Gujarat High Court in the case of Smith P. Sheth [2013 (10) TMI 1028 - GUJARAT HIGH COURT] Since, above order has been filed by the AR in support of his argument, therefore, we direct the AO to estimate the profit @12.5% amounting to Rs.5,18,803/- which was treated as bogus purchase on the basis of plethora of judgments. It has been held only profit can be added to the income of the assessee. In view of the above, appeal of the assessee is partly allowed.
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