https://www.taxtmi.com/caselaws?id=289511 The case involved the assessment of total income related to bogus purchases by an assessee engaged in manufacturing welding machines. The Assessing Officer added amounts for non-genuine purchases, leading to an appeal. The CIT(A) partially allowed the appeal, upholding a 25% addition on bogus purchases. However, the Tribunal found the 25% addition excessive due to VAT credit denial by the Sales Tax department. To deter bogus trading practices, the Tribunal directed an addition equal to 11.50% of bogus purchases minus the denied VAT credit, resulting in the deletion of excess additions. The Tribunal also addressed the disallowance of VAT credit by the Sales Tax department, allowing partial relief based on gross profit rate and VAT credit denial. en-us Wed, 27 Sep 2017 00:00:00 +0530 Tue, 04 Aug 2020 20:13:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=289511 The case involved the assessment of total income related to bogus purchases by an assessee engaged in manufacturing welding machines. The Assessing Officer added amounts for non-genuine purchases, leading to an appeal. The CIT(A) partially allowed the appeal, upholding a 25% addition on bogus purchases. However, the Tribunal found the 25% addition excessive due to VAT credit denial by the Sales Tax department. To deter bogus trading practices, the Tribunal directed an addition equal to 11.50% of bogus purchases minus the denied VAT credit, resulting in the deletion of excess additions. The Tribunal also addressed the disallowance of VAT credit by the Sales Tax department, allowing partial relief based on gross profit rate and VAT credit denial. Case-Laws Income Tax Wed, 27 Sep 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=289511