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2014 (9) TMI 17 - HC - Income TaxBogus purchase - documentation for showing import - the main focus and contention of the appellant-assessee is that once invoice dated 3rd July, 1981 was accepted and no addition was made, then no addition was justified in respect of the invoice dated 3rd June, 1981. – Held that:- In respect of the consignment covered by the second invoice, no addition has been made by the AO primarily for the reason that M/s. Asia Transport Company had confirmed having sent the lorry receipt for transportation of goods along with their bill to UET- the assessee was given benefit and no addition was made in respect of this invoice - there was no evidence or material whatsoever - the statement of accounts furnished by M/s. H.M. Doyal & Co. did now show any opening balance as on 10th September, 1981 - G. Kapoor, in his statement recorded on oath under Section 131 of the Act, had stated that they were purely a trading concern and had dealings with four companies - They used to make local purchases at a petty scale - they purchased imported material for their manufacturing operations - They had procured import licences upto 1970-71 but thereafter no licences had been procured by them - Their firm had not purchased any import licence after 1970-71 up till 1982-83, but some persons had approached him for signatures, as actual user for importing goods under the licences, and he had received, commission @ 2% in cash on the goods imported, but he had never used the said goods and did not even know what goods were imported. The Assessing Officer was rather liberal in accepting the case of the appellant-assessee in respect of the invoice dated 3rd July, 1981 and this cannot be a ground or justification for not making any addition in respect of the invoice dated 3rd June, 1981. – thus, the order of the Tribunal is upheld – Decided against Assessee.
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