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2021 (1) TMI 875 - AT - Income TaxEstimation of Income - bogus purchases - CIT(A) sustaining the disallowance made @12.5% - HELD THAT:- Since the revenue had not doubted the corresponding consumption / sales made out of such disputed purchases in the peculiar facts of the instant case, it would be just and reasonable to estimate only the profit element embedded in such disputed purchases and bring to tax the same. In the case of Simit P Sheth [2013 (10) TMI 1028 - GUJARAT HIGH COURT] had estimated the profit percentage to be at 12.5%. We also find that in series of decisions rendered by this Tribunal the very same profit percentage of 12.5% has been considered for the similar line of industry in which assessee is engaged in. Hence, we hold that the ld. CIT(A) had rightly estimated the profit percentage at 12.5% on value of alleged disputed purchases - Decided against assessee.
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