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2018 (3) TMI 576 - AT - Income TaxDisallowance of 100% of bogus purchase - Held that:- In this case the sales have not been doubted it is settled law that when sales are not doubted, 100% disallowance for bogus purchase cannot be done. This proposition is supported from Hon’ble jurisdictional High Court decision in the case of Nikunj Eximp Enterprises (2013 (1) TMI 88 - BOMBAY HIGH COURT). Facts of the present case indicate that assessee has made purchase from the grey market. Making purchases through the grey market gives the assessee saving on account of non-payment of tax and others at the expense of the exchequer. In such situation, in my considered opinion, on the facts and circumstances of the case the 12.5% disallowance out of the bogus purchases meets the ends of justice. This is following the decision of the Hon’ble Gujarat High Court in the case of Simit P. Sheth (2013 (10) TMI 1028 - GUJARAT HIGH COURT)
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