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2023 (7) TMI 748 - AT - Income TaxEstimation of income - bogus purchases - HELD THAT:- As the alleged bogus purchases are part of the total sales made by the assessee and accepted by the AO. Assuming yet not accepting that the impugned purchases are bogus all that can be added is the profit element embedded there in as held in the case of Mohammed Hazi [2019 (2) TMI 1632 - BOMBAY HIGH COURT] which has been followed by [2023 (6) TMI 1123 - ITAT DELHI]. We find that the net profit shown by the assessee is 7.50%, therefore, the AO is directed to restrict the addition to 7.50% being the alleged bogus purchases and delete the balance amount. We further direct the AO to delete the addition being alleged commission on accommodation entries as the said amount has been subsumed in the aforementioned addition. Decided partly in favour of assessee.
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