2013 (8) TMI 80 - GUJARAT HIGH COURT

Bogus purchases - Tribunal held that purchases are not bogus since there are entries in books of accounts for them - Held that:- Assessee had made payment through crossed cheques and assessing officer did not find that payment made came back to assessee. Assessing Officer has made addition in respect to the outstanding amount as on 31.3.2001 which has been cleared in the succeeding years. The ratio of the creditor to the purchases is normal considering the past records of the assessee - The issue is essentially based on facts - no question of law arises - Decided against revenue.

Disallowance of brokerage commission - CIT sustained addition - Tribunal deleted addition due to lack of evidence - Held that:- Assessee made payment of commission through account payee cheques for sales canvassed by the party and also in consideration of the collection recovered from purchaser. Payments cannot be unreasonable particularly when M/s. Shree Shantinath Silk Industries is not related to the assessee and so even disallowance made by CIT(A) is not proper - The issue is essentially based on facts - no question of law arises - Decided against revenue.