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The Tax Publishers2021 TaxPub(DT) 5223 (Mum-Trib) INCOME TAX ACT, 1961
Section 143(3)
When sale was taken into income, there could not be a further addition of 2% notional addition for bogus sales as the same sale could not be genuine and bogus at the same time.
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Assessment - Addition to income - AO treated sales declared by assessee as bogus and added commission at the rate of 2% on sales - Sale was taken into income
AO treated sales declared by assessee as bogus and added commission at the rate of 2% on sales made to Ecoscapes International (P) Ltd. Assessee pleaded that said sales had been included in income and income so derived was also taken into account. Held: When sale was taken into income, there could not be a further addition of 2% notional addition for bogus sales as the same sale could not be genuine and bogus at the same time. In this view of the matter, notional addition of 2% as bogus sales commission was not sustainable.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2012-13 to 2014-15
INCOME TAX ACT, 1961
Section 14A Rule 8D
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