Arm twisting stratergy

[Guest]

Dear Sir,

Please guide us what to do regarding issue of IT related to bogus purchase. We are told by IT that we should accept amount and pay as per the 12.5% profit ratio for eg: - if purchase of ₹ 1000000/- is bogus purchase as per them then we have to accept 12.5% profit and on that profit they will charge 30% income tax + interest + Penalty if we accept this way or if we dont then they will charge whole 12.5% (known as 100% addition) and they will issue order. Please guide us what a common person should do about this.

AI Summary

User Faces Income Tax Dispute Over Alleged Bogus Purchases; Authorities Propose 12.5% Profit Margin Taxed at 30% A user seeks advice on handling an income tax issue related to alleged bogus purchases. The tax authorities propose that the user accept a 12.5% profit margin on the disputed amount, which would then be taxed at 30%, plus interest and penalties. If the user does not agree, the authorities threaten to impose a 100% addition on the profit margin and issue an order. The user is asking for guidance on how to proceed with this situation.