Straight-line lease rental accounting change results in penalty quashed where disclosed accounts and bona fide arguable accounting interpretation exis...
Allocation of enhanced FSI/TDR proceeds between cooperative society and individual flat-owners; tribunal deletes society LTCG addition, remits 80P ver...
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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