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2020 (4) TMI 563 - AT - Income TaxEstimation of profit - bogus purchases - estimation of profit element @ 12.5% - HELD THAT:- In a case where purchases are considered to be purchased from suspicious/hawala dealers, various High Courts and Tribunals had considered an identical issue in light of investigation carried out by the Sales Tax Department and held that in case of purchases claims to have made from alleged hawala dealers, only profit element embedded in those purchases needs to be taxed, but not total purchase from those parties - See SIMIT P SHETH [2013 (10) TMI 1028 - GUJARAT HIGH COURT] Considering facts and circumstances of this case and consistent with view taken by the Co-ordinate Bench in number of cases, we are of the considered opinion that the ld. AOP as well as the ld. CIT(A) have taken fairly reasonable view and estimated 12.50% profit of alleged bogus purchases. We, therefore are of the view that there is no reason to interfere with orders of the CIT(A) - Decided against assessee.
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