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2017 (10) TMI 1249 - AT - Income TaxBogus purchases - Held that:- Disallowance for bogus purchase depends upon the facts of the case. In this case the assessee is not engaged in trading hence relief on the analogy that sales are not doubted cannot be granted. Case laws cited by assessee are not applicable. However, find that in many cases, ITAT Mumbai Benches have held that 12.5% disallowance of the bogus purchases in such cases meets the ends of justice, following Hon’ble Gujarat High Court decision in case of Simit P.Seth [2013 (10) TMI 1028 - GUJARAT HIGH COURT]. Accordingly, modify the order of the learned CIT(A) and hold that 12.5% disallowance of bogus purchases should be done.
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