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2021 (1) TMI 683 - AT - Income TaxEstimation of income - Bogus purchases - assessee failed to establish the genuineness of the purchases - AO estimated the profit @ 12.5% on the disputed purchases - HELD THAT:- The ratio laid down in Jakharia Fabric (P.) Ltd. [2020 (3) TMI 474 - BOMBAY HIGH COURT] observing that profit element embedded in such transaction has to be added to the total income of the assessee is applicable to the present case. The nature of business in the instant case is manufacturing and selling of agricultural equipments and implements. Considering the nature of business of the assessee, we set aside the order of the Ld. CIT(A) and direct the AO to estimate profit @ 4% on the disputed purchases and make an addition accordingly.
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