Bogus Sales Profit Addition Rejected as Sales Suppression Not Proved: Gujarat HC

Advertisement PCIT Vs Center Point Gems Pvt. Ltd. (Gujarat High Court) The Gujarat High Court heard a batch of tax appeals filed by the Revenue under Section 260A of the Income-tax Act, 1961 for Assessment Year 2012-13, challenging a common order of the Income Tax Appellate Tribunal, Surat Bench. The common issue in all appeals was whether the Tribunal erred in not estimating profitability at 6% on sales booked from alleged bogus parties despite sustaining an addition at 6% of alleged bogus purchases from the same parties. The respondent companies had originally filed returns of income, and...