Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (11) TMI 861 - ITAT MUMBAIAddition u/s 69C - bogus purchases - purchase from grey market at lower price - profit estimation - Held that:- The assessee did came forward and gave document to prove utilisation/consumption of material which was commented by learned CIT(A) to have proved utilisation/consumption of material for construction contracts executed by the assessee. Under these circumstances, the fair conclusion that can be drawn is that the assessee did purchased these material but from grey market at lower price and obtained bills from these ten parties at higher rates to justify utilisation/consumption for construction contracts and to suppress profits. The end of justice in this case will be met if the profit embedded in such alleged purchases is estimated being savings made by the assessee by obtaining material from grey market at lower price and brought to tax . In our view, the estimated profit in this case need to be estimated @12.5% of these alleged bogus purchases which need to be brought to tax. Thus, an additional income of ₹ 38,08,709/- is brought to tax and if the said income is added to the declared income of the assessee in return of income he total income stood at approx 8% of the gross contract value which in the case of the tax-payers engaged in civil contracts is considered as bench mark under presumptive tax scheme for small contractors u/s 44AD .
|