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2018 (2) TMI 735 - AT - Income TaxAddition of bogus purchases u/s 69C - genuineness of purchases - Held that:- AO was erred in making 100% addition towards alleged bogus purchases u/s 69C of the Act. CIT(A), without appreciating the facts has gone on a different footing and estimated gross profit by adopting assessment year 2013-14 gross profit to sustain the addition made by the AO towards alleged bogus purchases. Though the AO has made addition on the basis of information received from sales-tax department failed to make any further enquiries in the light of evidences filed by the assessee to ascertain genuineness of purchases. Therefore, we are of the considered view that the case law relied upon by the Ld.DR is not applicable to the facts of present case. In this view of the matter and considering the ratios of the case laws discussed by us, we direct the AO to estimate net profit on total alleged bogus purchases at 12.5% for AYs 2010-11 and 2011-12.
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