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2023 (4) TMI 337 - AT - Income TaxEstimation of income - Bogus purchases - CIT(A) held that genuineness of impugned purchases cannot be accepted as the assessee failed to discharge its onus fully but entire gross amount of purchase also cannot be disallowed, thus ddition to extent of 10% of alleged bogus purchases - HELD THAT:- As entire amount of bogus purchases shown by the assessee cannot be treated as income of the assessee. What best can be added in the given facts and circumstances is the profit embedded in such transaction of bogus purchases. To determine the profit embedded in such bogus purchases, there is no standard formula prescribed under the provisions of law. However, we note that, the different Hon’ble Court in such facts and circumstances have adopted the basis of estimating the income based on some percentage. In the case on hand, the learned CIT(A) after referring to the judgment of Gurubachhan Singh J Juneja [2008 (2) TMI 177 - GUJARAT HIGH COURT] and CIT vs. Bholanath Poly Fab. Pvt. Ltd. [2013 (10) TMI 933 - GUJARAT HIGH COURT] estimated the profit embedded in alleged bogus purchases @ 10% of such purchases. The learned DR before us has not brought any contrary material against the finding of the learned CIT(A). Decided against revenue.
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