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2017 (9) TMI 1575 - ITAT MUMBAIUnexplained/unproved purchase/investments in purchase u/s. 69 - prove the genuineness of the purchases and sale transactions - Held that:- In the Assessment Years before us i.e. 2006-07, 2008-09 and 2009-10 the assessee could not produce the necessary evidences to show that there is actual delivery of goods and in fact it is the finding of the Assessing Officer that the assessee expressed inability to produce any documents regarding the mode of delivery of material purchased and sold. The finding of the Assessing Officer is not rebutted with evidences. In the circumstances we cannot follow the order of the Tribunal for the Assessment Year 2007-08 and delete the entire addition of bogus purchases though vehemently relied upon by the Learned Counsel for the assessee. On a careful reading of the observations of the decision of the Ld.CIT(A) we do not find any valid reason to interfere with the findings and decision made by the Ld.CIT(A) in estimating the Gross Profit on such bogus purchases. However, in respect of the percentage adopted by the Ld.CIT(A) towards initial investment of capital on these purchases at 20% is on higher side. Thus, we direct the Assessing Officer to modify this percentage to 10% instead of 20% adopted by the Ld.CIT(A). Except for this percentage there is no infirmity in the order passed by the Ld.CIT(A) - Decided partly in favour of assessee.
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