Court :
ITAT Mumbai
Brief :
This is an appeal by the revenue wherein the revenue is aggrieved that Learned Commissioner of Income Tax (Appeals) [in short learned CIT(A)] has reduced the addition for bogus purchase of Rs. 3,76,530/- done @ 100% by Assessing Officer by sustaining only 12.5%.
Citation :
I.T.A. No. 1838/Mum/2019
THE INCOME TAX APPELLATE TRIBUNAL
“SMC-I” Bench, Mumbai
Shri Shamim Yahya (AM)
I.T.A. No. 1838/Mum/2019 (Assessment Year 2009-10)
ITO-27(1)(5) Tower No. 6, Room No. 410, Vashi Railway Station Complex, Vashi Navi Mumbai-703. (Appellant)
Vs.
M/s. Gluck (India) Manufacturing Company 113/114 Shivshakti Industrial Estate, LBS Marg, Ghatkopar West Mumbai-400 086. PAN : AAAFG0730H
(Respondent)
Assessee by None
Department by Shri Kailash Gaikwad
Date of Hearing 13.10.2020
Date of Pronouncement 14.10.2020
O R D E R
This is an appeal by the revenue wherein the revenue is aggrieved that Learned Commissioner of Income Tax (Appeals) [in short learned CIT(A)] has reduced the addition for bogus purchase of Rs. 3,76,530/- done @ 100% by Assessing Officer by sustaining only 12.5%.
2. The assessee in this case is engaged into business of manufacturing of pressure gauges. The assessment was reopened upon information from sales tax department that assessee has made Rs. 3,76,530/- purchases from bogus dealers. The Assessing Officer made 100% addition of the bogus purchase.
3. Upon assessee's appeal learned CIT-A has noted that the sale has not been doubted. Accordingly placing reliance upon several case laws and up on the facts of the case he sustained 12.5 % disallowance out of the bogus purchases.
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