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2017 (6) TMI 1370 - ITAT MUMBAIEstimation of income - Bogus purchases - assessee has purchased materials from the parties so identified by the Sales tax department - CIT(A) restricted the addition to 8% - HELD THAT:- Decision taken by Ld CIT(A) does not call for any interference. In the instant case, the AO has not proved that the impugned purchases have not been sold. As submitted by Ld A.R, an item cannot be sold without purchasing the same. Hence there is no reason to disallow entire amount of purchases. Accordingly, in the facts and circumstances of the case Ld CIT(A) was justified in restricting the disallowance to 8% of the alleged bogus purchases. Accordingly I uphold the order passed by Ld CIT(A) on this issue. Appeal filed by the revenue is dismissed.
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