TaxTMI Login
🎉 Festive Offer: Flat 15% off on all plans! →⚡ Don’t Miss Out: Limited-Time Offer →
TaxTMI 
Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>ITAT affirms CIT(A) ruling for assessee, rejecting Revenue's appeal on bogus purchases & profit margin.</h1> <h3>ITO, Vapi Ward-2, Vapi Versus Smt. Purnima Sunil Agrawal, Prop. of Shree Balaji Traders and vice-versa</h3> The ITAT upheld the CIT(A)'s decision in favor of the assessee, dismissing the Revenue's appeal due to lack of evidence of bogus purchases and reasonable ... N.P. determination - AO to adopt Net Profit at the rate of 2% of the turnover for determining the taxable income in the case of the appellant as against 0.64% as disclosed by the appellant in her return of income - Held that:- In our considered view, the issue and the assessment year, i.e. AY 2009-10, in question in respect of supply of waste-paper to paper-mills of Vapi are same. Therefore, following the judgment in the case of Prakash F. Singh (2016 (12) TMI 1630 - ITAT AHMEDABAD), the order of the ld. CIT(A) is upheld and the Revenue’s appeal as well as assessee’s appeal is dismissed. Commissioner of Income-tax (Appeals) has not erred in directing the Learned Assessing Officer to adopt Net Profit at the rate of 2% of the turnover for determining the taxable income in the case of the appellant Issues:Cross-appeals by Revenue and assessee against CIT(A) order for AY 2009-10.Analysis:The Revenue's appeal contested the deletion of a disallowance of Rs. 23,20,713, representing 15% of total purchase. The assessee's appeal challenged the CIT(A)'s directive to adopt a net profit rate of 2% of turnover instead of the 0.64% declared by the assessee. The assessee's counsel argued that the issue mirrored a previous case, and referred to a specific ITAT order supporting the assessee's position. The ITAT upheld the CIT(A)'s decision in favor of the assessee, emphasizing the lack of evidence of bogus purchases and the reasonable profit margin. The Revenue failed to provide contrary evidence, leading to the dismissal of their appeal. The judgment aligned with a previous case involving similar facts, thus dismissing both the Revenue's and assessee's appeals.
TaxTMI 
