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2018 (11) TMI 1905 - ITAT MUMBAIEstimation of income - Bogus purchases - HELD THAT:- The assessee has produced copies of purchase bills and also filed payment proof to prove that payment for the said purchases have been made through proper banking channels. Under these circumstances, the only inference that could be drawn towards purchases from the said parties are are not totally bogus, but the assessee could not substantiate with necessary evidence. Under these circumstances, various Courts and Tribunals have taken a consistent view that when the purchases are considered as bogus, only profit element embedded in those purchases could be added as income of the assessee, but not total purchases from the said parties. The co-ordinate bench of ITAT, Mumbai in a number of decisions, by following the judgement of Hon’ble Gujarat High Court in the case of Simit P Sheth [2013 (10) TMI 1028 - GUJARAT HIGH COURT] has directed the AO to sustain addition to the extent of 12.5% of bogus purchases. In this case, facts are identical to the facts which have already been considered by the co-ordinate bench in a number of cases. Therefore, consistent with the view taken by the co-ordinate bench, we direct the AO to sustain addition to the extent of 12.5% of alleged bogus purchases. - Decided partly in favour of assessee.
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