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The Tax Publishers2019 TaxPub(DT) 5788 (Bom-HC) INCOME TAX ACT, 1961
Section 68
Where AO did not reject either purchases made by assessee or sales made out of the said purchases; the Tribunal was justified in restricting the addition made by AO on account of bogus purchases to 10% of total purchases.
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Income from undisclosed sources - Addition under section 68 - Bogus purchases - AO did not reject either purchases or sales made out of such purchases
AO made addition under section 68 on the ground that assessee's purchases were found to be bogus. Accordingly, he added entire purchase amount to assessee's income. Tribunal, however, restricted to the addition to 10% of total purchases. Aggrieved, Revenue was in appeal. Held: Since AO did not reject either purchases made by assessee or sales made out of the said purchases; the Tribunal was justified in restricting the addition made by AO on account of bogus purchases to 10% of total purchases.
REFERRED :
FAVOUR : In assessee's favour
A.Y. :
INCOME TAX ACT, 1961
Section 143
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