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2017 (1) TMI 898 - AT - Income TaxEstimation of profit @ 8% on the alleged bogus purchases - Held that:- As in absence of any evidence to prove the fact that the assessee had actually taken delivery of goods, assessee’s claim that purchases were genuine cannot be accepted. Therefore, the assessee’s claim that the entire addition should have been deleted is not acceptable. At the same time, it is a fact on record, that the A.O. has not disputed the sales effected by the assessee. Hence, the assessee might have purchased the goods from some other source. Taking this into consideration and also the fact that the assessee has failed to prove beyond doubt that the purchases made from the concerned parties are genuine, there is no other option but to estimate the profit element embedded in the bogus purchases. Moreover, we have also noted that the assessee himself before the A.O. as well as ld. CIT(A) had taken an alternate contention to estimate the profit at 8%. Therefore, on an overall consideration of facts and materials on record, we are of the considered view that the ld. CIT(A) was justified in estimating the profit at 8% of the bogus purchases
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