ITO WARD 1(5), THANE vs. M/S HNC ENGINEERING PVT. LTD, THANE

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ITA 360/MUM/2019Status: DisposedITAT Mumbai10 February 2020AY 2010-119 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the assessee's declared GP ratio was 2.97% and deviated from the CIT(A)'s reduction. It directed the AO to disallow 9.53% of the bogus purchases, considering the established nature of accommodation entries.

What were the facts?

The assessee, engaged in iron and steel trading, was found to be involved in hawala transactions. The Assessing Officer (AO) made an addition of 12.5% on bogus purchases. The CIT(A) reduced this disallowance to 3.75%.

What were the issues?

The primary issue was the extent of disallowance to be made on account of bogus purchases identified as accommodation entries. The Tribunal had to determine the appropriate profit margin to be added back.

Which sections of the Income-tax Act were involved?

Section 143(1),Section 147,Section 148,Section 143(2),Section 142(1),Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “G”

Before: SHRI PAWAN SINGH, JM & SHRI S. RIFAUR RAHMAN, AM

आदेशकीप्रनिनिनिअग्रेनर्ि/Copy of the Order forwarded to : 1. अपीलाथी/ The Appellant 2. प्रत्यथी/ The Respondent 3. आयकरआयुक्त(अपील) / The CIT(A)

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