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2022 (11) TMI 276 - AT - Income TaxReopening of assessment u/s 147 - Estimation of income for bogus purchases - AO disallowed 12.5% of those purchases as embedded profit - HELD THAT:- The assessee is a partnership firm engaged in the business of trading of ferrous as well as nonferrous metals. Original return filed was not picked up for scrutiny. Subsequently when the information was received about assessee engaging in purchase from 14 parties who are listed as bogus parties, the case of the assessee was reopened. We find that there is a tangible material available with the assessing officer for reopening of the material and it is rightly upheld by the learned CIT – A. He relied on the decision of the Honourable Bombay High Court in case of principal Commissioner of income tax versus Batliboi environmental engineering Ltd [2022 (6) TMI 903 - BOMBAY HIGH COURT] wherein 12.5% of the bogus purchases were held to be reasonable. On the merits of the addition, we find that issue squarely covered by the decision of the Honourable Bombay High Court in Principal Commissioner of Income-tax V Batliboi Environmental Engineering Ltd [2022 (6) TMI 903 - BOMBAY HIGH COURT] Wherein 12.5% of the amount of the bogus purchases were appellant is an addition in such cases - Appeal filed by the assessee is dismissed.
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