https://www.taxtmi.com/caselaws?id=757172 The ITAT Mumbai held that where an assessee was found to have made bogus purchases, the estimation of income should be based on a gross profit rate of 3% as pleaded by the assessee. The assessee supported this contention by providing an assessment order of a family member's firm for the same assessment year under sections 143(3) read with 147, which received similar treatment. The tribunal directed the AO to apply the 3% gross profit rate on the alleged bogus purchases to determine the assessee's income, ensuring consistent treatment across similar cases. en-us Tue, 13 Aug 2024 00:00:00 +0530 Wed, 14 Aug 2024 16:00:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=757172 The ITAT Mumbai held that where an assessee was found to have made bogus purchases, the estimation of income should be based on a gross profit rate of 3% as pleaded by the assessee. The assessee supported this contention by providing an assessment order of a family member's firm for the same assessment year under sections 143(3) read with 147, which received similar treatment. The tribunal directed the AO to apply the 3% gross profit rate on the alleged bogus purchases to determine the assessee's income, ensuring consistent treatment across similar cases. Case-Laws Income Tax Tue, 13 Aug 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=757172