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2018 (7) TMI 1406 - AT - Income TaxBogus purchases - GP determination - Held that:- The addition, which could be made, was to account for profit element embedded in these purchase transactions to factorize for profit element earned by assessee against possible purchase of material in the grey market and undue benefit of VAT against alleged bogus purchases, which lower authorities have rightly done. However, considering GP rate already declared by the assessee, we find that the estimation of 17% is on the higher side and therefore, we restrict the same to 5% of alleged bogus purchases. The same comes to ₹ 1,44,808/-. The order of Ld. first appellate authority stand modified to that extent.
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