|CORAM:||Jason P. Boaz (AM), Saktijit Dey (JM)|
|CATCH WORDS:||Bogus purchases, Bogus Sales|
|DATE:||January 18, 2017 (Date of pronouncement)|
|DATE:||January 30, 2017 (Date of publication)|
|FILE:||Click here to download the file in pdf format|
|Bogus purchases: As a direct one to one relationship/nexus between the purchases and sales has not been established by the assessee, the purchases have to be treated as bogus and 12% of the purchase cost is assessable as profits (law on the subject noted)|
The assessee has failed to place on record any material evidence to controvert the findings of the CIT(A). In this view of the matter, we uphold the order of the CIT(A) on this issue of bringing to tax in the assessee’s hands the profits embedded in the bogus purchase @ 12% of the purchase cost i.e. Rs. 5,15,377, since the direct one to one relationship/nexus between the said purchases and sales have not been established by the assessee.
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