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2022 (12) TMI 1160 - AT - Income TaxEstimation of income - bogus purchases - assessee has made an alternate plea that when the purchases are held to be bogus and only certain percentage only to be disallowed - HELD THAT:- By relying on the decision of the Hon'ble Bombay High Court in the case of Pr. CIT v. M/s. Mohommad Haji Adam & Co [2019 (2) TMI 1632 - BOMBAY HIGH COURT] we are in agreement with the above submissions, the Coordinate Benches are disallowing only 12.5% of the total purchases as reasonable in these type of cases. We observe in the present case that assessee has already declared profit @ 9% (confirmed by AO) the net difference of 3.5% (12.5 - 9) should be considered for disallowance. Accordingly, we direct Assessing Officer to disallow @ 3.5% of the alleged bogus purchases. Appeal filed by the assessee is partly allowed.
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