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2023 (11) TMI 285 - AT - Income TaxEstimation of income - bogus purchases - CIT(A) estimated the profit derived by the assessee at 7.5% of the total purchase - HELD THAT:- CIT(A) considered the assessee’s Gross Profit rate at 9.52% and Net Profit at 2.09% and considering the probable savings in the cost of purchase of goods in grey market by avoiding burden of VAT at 5% and then determined the profit made by the assessee at 7.5% on the purchase from M/s. Chauhan Suppliers. This decision arrived by CIT(A) by following decision in the case of Sandeep Kumar Chandak [2019 (10) TMI 1424 - ITAT AHMEDABAD] and Sun Steel [2004 (6) TMI 236 - ITAT AHMEDABAD-B] which were later confirmed by the High Court of Gujarat in Sandeep Kumar Chandak [2020 (10) TMI 95 - GUJARAT HIGH COURT]. Thus the finding arrived by the Ld. CIT(A) does not require any interference and Revenue could not produce before us any document in support of its claim to sustain the entire addition made by the AO. The Case law relied by Ld. D.R. is clearly distinguishable. Thus no hesitation in confirming the order passed by the Ld. CIT(A). Decided against revenue.
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