If the gross profit already shown is more than 12.5%, no disallowance is required on account of Bogus purchases
Last updated: 22 January 2021
Court :
ITAT Mumbai
Brief :
This appeal by the assessee wherein the assessee is aggrieved that the learned Commissioner of Income Tax (Appeals)-3, Mumbai (‘ld.CIT(A) for short) dated01.11.2018 has erred in sustaining 25% disallowance on account of bogus purchase for the assessment year (A.Y.) 2010-11.
Citation :
ITA No. 736/Mum/2019
IN THE INCOME TAX APPELLATE TRIBUNAL “SMC-II” BENCH, MUMBAI
BEFORE SHRI SHAMIM YAHYA, AM
ITA No. 736/Mum/2019
(Assessment Year: 2010-11)
M/s. D. C. Engineers Private Limited
Plot No. 36, Survey No.66-1/2,
Naikpada, Waliv, Opp. Rapid Pack,
Vasai (E) – 401 208
PAN/GIR No. AABCD 1670 R
(Appellant
Vs.
ITO, Ward – 4(1),
Thane
Respondent
Appellant by : None
Respondent by : Shri Kailash Gaikwad
Date of Hearing : 14.10.2020
Date of Pronouncement : 01.01.2021
O R D E R
Per Shamim Yahya, A. M.:
This appeal by the assessee wherein the assessee is aggrieved that the learned Commissioner of Income Tax (Appeals)-3, Mumbai (‘ld.CIT(A) for short) dated01.11.2018 has erred in sustaining 25% disallowance on account of bogus purchase for the assessment year (A.Y.) 2010-11.
2. Brief facts of the case are that the assessee is engaged in the business of manufacturing of engineering goods. Information was received from the Sales Tax Department that the assessee is engaged in making bogus purchases of Rs.62,25,917/- from two parties. The assessment was accordingly reopened.
3. The Assessing Officer (‘A.O.’ for short) in this case has made 25% addition on account of bogus purchase amounting to Rs.15,56,480/-.
4. Upon the assessee’s appeal, the ld. CIT(A) confirmed the same.
To know more in details find the attachment file
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