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| The Tax Publishers2020 TaxPub(DT) 4979 (Mum-Trib) INCOME TAX ACT, 1961
Section 69
Where AO made addition on account of bogus purchases shown by assessee, as decided in assessee's own case for assessment years 2010-11 and 2011-12, wherein profit rate was estimated at rate of 8% of bogus purchases, AO was directed to re-compute the income accordingly.
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Income from undisclosed sources - Bogus purchases - Estimation of profit embedded in purchases -
Based on information received from Sales Tax Department, that assessee obtained bogus purchase bills, AO made addition on account of bogus purchases shown by assessee. CIT(A) restricted addition to 12.5% of purchases made from alleged suspicious dealers. Held: Similar issue was decided in assessee's own case for assessment years 2010-11 and 2011-12, wherein profit rate was estimated at rate of 8% of bogus purchases. Following the same, AO was directed to re-compute the income accordingly.
Followed:Hasmukh J. Ruparelia v. ITO [ITA No. 1854/Mum/2019, ITA No.1855/Mum/2019, ITA No.1856/Mum/2019, dt. 15-6-2020]
REFERRED : CIT v. Simit P. Sheth (2013) 356 ITR 461 (Guj) : 2013 TaxPub(DT) 2115 (Guj-HC), N.K. Proteins Ltd. v. Dy. CIT [ITA No. 769 of 2017 dt. 16-1-2017 (SC)] : 2017 TaxPub(DT) 1860 (SC)
FAVOUR : Partly in assessee's favour.
A.Y. : 2009-10
IN THE ITAT, MUMBAI BENCH
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