Penalty for estimation of income and disallowances for tax non-deduction clarified: estimation-based penalties not sustainable; additions without conc...
Managerial remuneration disallowance under s.40A(2)(b) challenged over alleged tax-avoidance; appellate decision restored deletion of addition for dir...
Classification of imported goods as electronic cigarette versus tobacco product reversed for lack of proof; order set aside for jurisdictional overrea...
Bogus purchases and estimation of income were examined where the CIT(A) had directed the AO to add only the gross profit element in respect of purchases from four alleged suppliers. The tribunal found the assessee's construction activity undisputed and concluded purchases were actually from other parties yielding profits higher than the disclosed GP rate, so the CIT(A)'s restriction was incorrect. Applying jurisdictional High Court precedent that taxes only the profit margin in bogus purchases, the ITAT restricted the addition for the four non existent parties to 5% above the assessee's disclosed GP rate and partly allowed the revenue appeal.
Bogus purchases and estimation of income were examined where the CIT(A) had directed the AO to add only the gross profit element in respect of purchases from four alleged suppliers. The tribunal found the assessee's construction activity undisputed and concluded purchases were actually from other parties yielding profits higher than the disclosed GP rate, so the CIT(A)'s restriction was incorrect. Applying jurisdictional High Court precedent that taxes only the profit margin in bogus purchases, the ITAT restricted the addition for the four non existent parties to 5% above the assessee's disclosed GP rate and partly allowed the revenue appeal.
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