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Income Tax Appellate Tribunal, MUMBAI BENCH “SMC”, MUMBAI
Before: SHRI R.C. SHARMA & SHRI C.N. PRASAD
O R D E R PER R.C. SHARMA, ACCOUNTANT MEMBER
This is an appeal filed by the revenue against the order of CIT(A)- 58, Mumbai dated 20/12/2018 for A.Y.2009-10 in the matter of order passed u/s.143(3) r.w.s. 147 of the Income Tax Act, 1961.
In this appeal revenue is aggrieved by the action of CIT(A) for restricting the addition to the extent of 12.5% in respect of bogus purchases.
Rival contentions have been heard and record perused. The AO got information that assessee has taken bogus accommodation bills, accordingly, he added 100% of such purchases in assessee’s income amounting to Rs.38,409/-.
By the impugned order, CIT(A) restricted addition to the extent of 12.5% after recording detailed finding from para 8 to 12 of its appellate order. After applying various judicial pronouncements, CIT(A) held that addition to the extent of 12.5% will serve the purpose of justice so as to fill the gap of leakage of revenue, if any. The finding so recorded by CIT(A) has not been controverted, accordingly, we do not find any reason to interfere in the order of CIT(A).
In the result, appeal of the revenue is dismissed.
Order pronounced in the open court on this 28/02/2020