Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (7) TMI 1400 - AT - Income TaxEstimation of income on bogus purchases - Addition on the basis of surmises and presumption - AO after rejecting the books of accounts applied 12.5% as profit on purchases - HELD THAT:- Application of GP 12.5% on the bogus purchases is reasonable but the GP declared by the assessee in the books of account should be reduced from the said percentage and only the differential should be applied - the rate as applied by the AO i.e 12.50% minus already declared in the profit and loss account i.e 9.38 % which comes to 3.12% should be applied. Accordingly, we set aside the order of ld.CIT(A) and direct the assessing officer to apply GP rate 3.12% on the bogus purchases to cover the various types of savings such as saving on account of VAT and other incidental charges. Resultantly, the appeal of the assessee stands partly allowed.
|