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2021 (1) TMI 943 - ITAT MUMBAIEstimation of income - Bogus purchases - HELD THAT:- It is not in dispute that the assessee should have made purchases from the grey market in order to have some savings in indirect taxes and incidental profits thereon. We find that this Tribunal in series of decisions by placing reliance on the decision in the case of Simit P. Sheth [2013 (10) TMI 1028 - GUJARAT HIGH COURT ] had categorically held that profit percentage of disputed purchases for the persons engaged in similar line of industry in which assessee is engaged in should be reasonably estimated at 12.5% of value of disputed purchases. Respectfully following the same, we direct the ld. AO to restrict the disallowance made on account of bogus purchases to 12.5% of value thereon. Accordingly, the ground raised by the assessee are partly allowed.
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