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The Tax PublishersITA No. 3557/Mum/2019
2021 TaxPub(DT) 0008 (Mum-Trib)INCOME TAX ACT, 1961
Section 69C
Since only profit element embedded in bogus purchases could be added to the income of the assessee, the action of CIT(A) restricting the addition to 12.5% of the alleged bogus purchases made by assessee was justified.
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Income from undisclosed sources - Addition under section 69C - Bogus purchases -
Revenue filed appeal against the order of CIT(A) restricting the addition to 12.5% of the alleged bogus purchases made by assessee. Held: In the case of CIT v. Simit P. Sheth [(2013) 356 ITR 451 (Guj) : 2013 TaxPub(DT) 2115 (Guj-HC)], addition of 12.5% of the total amount of bogus purchases was restricted by the ITAT holding that only profit element embedded in such purchases could be added to the income of the assessee. Following the same, addition restricted to 12.5% by CIT(A) required no reason to interfere with.
Followed:CIT v. Simit P. Sheth [(2013) 356 ITR 451 (Guj) : 2013 TaxPub(DT) 2115 (Guj-HC)].
REFERRED :
FAVOUR : In favour of assessee.
A.Y. : 2011-12
IN THE ITAT, MUMBAI BENCH
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