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2017 (6) TMI 1325 - ITAT MUMBAIEstimation of income - bogus purchases - AO in applying the profit rate i.e. gross profit rate @ 12.5% - CIT(A) confirming the addition @ 7.50% - HELD THAT:- Admittedly, these are bogus purchases but assessee has already disclosed a profit rate of 5.05% and qua that reduction should have been allowed to the assessee. Application of profit rate at 12.5% is perfectly but assessee has already disclosed profit rate of 5.05%, which should have been reduced. Accordingly, profit rate to the bogus purchases should be estimated at the rate of 7.45% and disallowance should be made. Direct the AO accordingly. The appeal of assessee is partly allowed.
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