2023 (10) TMI 1279 - AT - Income Tax

Estimation of income - bogus purchases - CIT(A) determined the disallowance @ 4.5% of the alleged purchase instead of 12.5% determined by the AO - HELD THAT - We find that the order of the Ld. CIT(A) is cogent based on the facts and placing reliance on the various judgments of Vijay Protein Ltd. 1996 (1) TMI 144 - ITAT AHMEDABAD-C and N.K. Proteins Ltd. 2003 (1) TMI 228 - ITAT AHMEDABAD-C , Presdient Industries 1999 (4) TMI 8 - GUJARAT HIGH COURT and Balchand Ajit Kumar 2003 (4) TMI 76 - MADHYA PRADESH HIGH COURT We decline in interfere with the order of the Ld. CIT(A). Appeal of the Assessee is dismissed.

Summary

Issues Involved:
The appeal against the order passed by the Learned Commissioner of Income Tax (Appeals)-2, Jodhpur for Assessment Year 2010-11 concerning the issue of bogus purchases.

Details of the Judgment:

1. The Assessee filed a return of income declaring total income of Rs. 4,85,600, while the Assessing Officer determined the total income at Rs. 8,95,297, considering profit at 12.5% on purchases made of Rs. 32,77,579. The Ld. CIT(A) determined a disallowance at 4.5% of the alleged purchase instead of 12.5% as determined by the Assessing Officer. The order of the Ld. CIT(A) was found cogent, based on facts, and relied on various judgments such as Hon'ble ITAT Ahmedabad Bench in the case of Vijay Protein Ltd. vs. ACIT, Hon'ble Gujrat High Court in the case of CIT vs. Presdient Industries, Hon'ble Madhya Pradesh High Court in the case of CIT vs. Balchand Ajit Kumar, and others. The Tribunal declined to interfere with the order of the Ld. CIT(A).

2. The appeal of the Assessee was dismissed, and the order was pronounced in the open Court on 27th October, 2023.