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2021 (10) TMI 2 - AT - Income TaxEstimation of income - Bogus purchases - information received from Sales-tax department through the Investigation Wing - HELD THAT:- As in course of assessment proceedings, though, the assessee furnished some documentary evidences, however, they were not to the satisfaction of the Assessing Officer. Therefore, he treated the purchases as non genuine. However, ultimately, he restricted the disallowance to 16% being the gross profit shown by the assessee. Assessing Officer was convinced that not only assessee had purchased the goods, but corresponding sales have been made. As find, while dealing with identical nature of dispute in assessee’s own case in assessment year 2010-11, the Tribunal [2020 (5) TMI 695 - ITAT MUMBAI] has restricted the disallowance to 3% of the alleged non genuine purchases. The factual position relating to the disallowance made in the impugned assessment year is identical. - Thus restrict the disallowance to 3% of the alleged non genuine purchases - Decided partly in favour of assessee.
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