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2021 (3) TMI 161 - ITAT MUMBAIEstimation of income - Bogus purchases - assessee having failed to prove the genuineness of purchases, disallowance made at 12.5% - HELD THAT:- Assessee was unable to furnish documentary evidence to the satisfaction of the Assessing Officer to prove the genuineness of purchases made, however, it is also a fact that the sales made by the assessee have not been doubted. This pre-supposes that in absence of the purchases, the assessee could not have effected corresponding sales. Even, the AO was also convinced with this fact. Hence, instead of disallowing the entire purchases, he disallowed only the profit element by estimating at 12.5%. Keeping in view the nature of business carried on by the assessee and the profit rate normally attached to such line of business, disallowance at 5% of the alleged non genuine purchases would be fair and reasonable. Accordingly, direct the Assessing Officer to restrict the disallowance to 5% of the alleged non genuine purchases. This ground is partly allowed.
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