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2020 (10) TMI 553 - ITAT MUMBAIEstimation of income - bogus purchases - purchases through the grey market - HELD THAT:- In several decisions it has been held that disallowance on account of bogus purchases should be done by reducing the gross profit already disclosed from the standard 12.5% disallowance being done. Hon’ble Jurisdictional High Court in the case of Adam H Kazi [2019 (2) TMI 1632 - BOMBAY HIGH COURT] has held that the disallowance regarding bogus purchases should be restricted to the difference between gross profit on normal purchases and purchases through bogus routes. We also note that several decisions that ITAT has considerably lowered the disallowance on account of bogus purchase. Accordingly, we direct that disallowance in this case be restricted to 10% of the bogus purchases. Additions on account of mismatch in 26AS (TDS) statement and accounting entries on account of contract report - submission of assessee that difference reflected in 26AS statement is a mistake, however, no evidence has been submitted - HELD THAT:- Merely stating that there is a mistake cannot suffice. The issue needs proper verification at the level of AO. Hence, we remit this issue the file of AO to examine has assessee’s submission that the said receipt reflected in 26AS statement is factually incorrect. The assessee should be granted adequate opportunity of being heard.
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