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2020 (12) TMI 206 - AT - Income TaxEstimation of income - bogus purchases - CIT(A) directing the ld. AO to tax only the profit element embedded in the bogus purchases @12.5% - HELD THAT:- The fact of consumption of materials are not disputed by the revenue. We find that the ld. CIT(A) had categorically recorded a finding that the assessee could have made only purchases from the grey market by way of inflation of some purchase price so as to suppress the true profits. By this process, the profit embedded thereof in the entire transaction was assumed to be 12.5% by the ld. CIT(A). Tribunal in series of decisions had held that profit percentage of 12.5% would meet the ends of justice on the alleged bogus purchases in the similar industries in which assessee is engaged into. No infirmity in the order of the ld. CIT(A) granting relief to the assessee. - Appeal of the revenue is dismissed.
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