Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (9) TMI 1534 - AT - Income TaxBogus purchases - CIT(A) restricted the addition to the extent of 30% of the total purchase - Held that:- The assessee has explained corresponding sales with respect to the entire purchases. The sales have not been disregarded. Before the AO assessee has also filed party-wise purchase along with address and total invoiced amount of each party. Merely because the assessee had not provided the VAT number of these parties the AO has added the amount. Since the corresponding sales have been accepted and the assessee had shown reasonable gross profit on sale, therefore, confirming the addition to the extent of 30% is not justified. Keeping view the totality of the facts and circumstances we direct the AO to restrict the addition to the extent 12.5% of such bogus purchases.
|