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2020 (9) TMI 1122 - AT - Income TaxEstimation of income - bogus purchases - addition made on account of @8% on the value of alleged bogus purchases - HELD THAT:- Assessee had disclosed total gross profit of 3.6%. Since, assessee is engaged in the business of export of cut and polished diamonds, there is no question of any VAT portion incurred by the assessee on the purchases. Gross profit disclosed by the assessee on the disputed purchases was 2.42%. These facts were not controverted by the revenue before us. Profit element determined @8% is on the much higher side and we deem it fit to estimate the profit @3% on the value of purchases treated as non-genuine by placing reliance on Ralf Jems Pvt. Ltd [2019 (9) TMI 1402 - ITAT MUMBAI]. Ground raised by the assessee is partly allowed.
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