Case Law Details
ACIT Vs M/s. Technotrade Impex India Pvt. Ltd (ITAT Mumbai)
When total sale was accepted by the AO, then, the entire purchases could not be added to the total income of the assessee. If there was case of bogus purchases then only profit element embedded in such purchases was to be added, not the total purchases made from those parties. Hence, the addition made by the CIT (A) regarding adopting the profit element at 8% on garden item trading segment and 12.5% on garden maintenance segment in estimating the profit element on the purchases made by the assessee was sustained.
FULL TEXT OF THE ITAT JUDGMENT
1. These appeals are filed by the Revenue and cross objections by assessee against the orders of the Ld. Commissioner of Income Tax (Appeals)- 21, Mumbai dated 16.06.2016 for the Assessment Years 2009-10 and 2012-13.
2. The only issue in both the appeals of Revenue as well as the cross objections of the assessee is in respect of certain purchases treated as non-genuine by the Assessing Officer and the Ld.CIT(A) estimated the profit element out of such purchases at 8% made in Garden Item Trading segment and 12.5% in Garden Maintenance Contract segment as against the entire purchases treated as non-genuine by the Assessing Officer. The assessee is in appeal against the order of the Ld.CIT(A) in estimating the profit element out of such purchases and the Revenue is in appeal in not sustaining the entire purchases disallowed by the Assessing Officer.
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