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2023 (11) TMI 283 - AT - Income TaxEstimation of income - bogus purchases - estimation of gross profit at 12.5% by CIT(A) - HELD THAT:- It is seen from the assessment order that the assessee after providing different addresses in invoices and ITR’s in the case of M/s. Prince Sales Corporation and M/s. Perfect Steel Corporation. Though the assessee requested to issue notices u/s. 133(6) to the additional two addresses, however the A.O. has not issued summons to the parties. Even in case the sellers who failed to furnish reply to the notices issued by the AO, that cannot be a ground to hold that the genuine purchases made by the assessee from them to be treated as bogus purchases. It is seen from the appellate order, the Ld. CIT(A) has correctly considered the above issue in detail and then following judgments of Jurisdictional High Court and Tribunal made an average disallowance of 12.5% on the alleged bogus purchases made by the assessee. This conclusion arrived by the Ld. CIT(A) in our considered view is found to be reasonable, since the average Gross Profit for the three years comes to 10.77%. CIT(A) has exhaustively discussed the matter and decided the appeal on the basis of finding of the Gujarat High Court in the case of CIT Vs. Simit Sheth (2013 (10) TMI 1028 - GUJARAT HIGH COURT) and other case laws. No distinguishable material has been produced before us by the Revenue, thus the factual position remains the same. Thus we are of the considered view that the Ld. CIT(A) has passed the order judiciously and correctly which does not require any interference and the estimation of gross profit at 12.5% is hereby confirmed.
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