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2021 (5) TMI 375 - ITAT MUMBAIBogus purchases - AO has restricted the disallowance to the profit element embedded in such purchases by estimating the same at 12.5% - HELD THAT:- Considering the fact that the assessee is a trader in ferrous and non ferrous metals, wherein, the profit margin normally expected to be earned varies between 2% to 5%, we are of the view that disallowance @5% of the alleged non genuine purchases would take care of suppression of profit, if any, on account of alleged non genuine purchases. Accordingly, we direct the assessing officer to restrict the disallowance to 5% of the alleged non genuine purchases in both the assessment years under appeal.
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