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| The Tax Publishers2020 TaxPub(DT) 0680 (Guj-HC) INCOME TAX ACT, 1961
Section 68
Where assessee had declared 7.31% towards profit on such alleged bogus purchases and Tribunal held that in view of profits already declared in alleged bogus purchases in the vicinity of 7% and an estimated disallowance of 5% alleged bogus purchases over and above the profits already declared would cover possible suppression in profits and will balance equity, therefore, appeal of Revenue was dismissed.
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Income from undisclosed source - Addition under section 68 - Bogus purchases -
Issue arose under consideration as to whether Tribunal had erred in law and on the facts in reversing the decision of CIT(A) and restricting the disallowance made on account of bogus purchases to the extent of 5% of bogus purchases. Held: Assessee had declared 7.31% towards profit on such alleged bogus purchases. Tribunal took a view that in view of the profits already declared in alleged bogus purchases in the vicinity of 7% and an estimated disallowance of 5% alleged bogus purchases over and above the profits already declared would cover possible suppression in profits and will balance the equity. Therefore, appeal of Revenue was dismissed.
REFERRED :
FAVOUR : In assessee's favour
A.Y. :
IN THE GUJARAT HIGH COURT
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