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2018 (9) TMI 1086 - AT - Income TaxUnexplained expenditure u/s 69C - N.P. estimation - Held that:- The assessee could not substantiate the delivery of material and failed to produce any of the party for confirmation of accounts. Notices issued u/s 133(6) elicited no satisfactory response. All these factors cast a serious doubt on assessee’s claim. Therefore, in such a situation, the addition, which could be made, was to account for profit element embedded in these purchase transactions to factorize for profit earned by assessee against possible purchase of material in the grey market and undue benefit of VAT against such bogus purchases. Therefore, on factual matrix, a composite addition @12.5% of bogus purchase, in our opinion, would be a reasonable estimation of additions - Decided partly in favour of assessee
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