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2018 (1) TMI 1290 - ITAT MUMBAIDisallowance of bogus purchases - estimation of profit - Held that:- Ld. Commissioner of Income Tax (Appeal) has not mentioned any reasoning to restrict the disallowance. Even if, the benefit of already declared GP of 2.46% is granted to the assessee still there is no infirmity in the assessment order in making the disallowance at 10% of the bogus purchases, therefore, considering the factual matrix and the decisions mentioned in earlier paras of this order, we reverse the order of the Ld. Commissioner of Income Tax (Appeal) and affirmed the disallowance made by the Ld. Assessing Officer. Thus, this ground of the Revenue is allowed. Addition u/s 68 - genuineness and authenticity of the transaction besides the identity and creditworthiness of the said party - Held that:- Assessee was maintaining two ledger accounts with Tube India one for purchase and other for receipt of payments. It is seen from the closing balance of ₹ 24,133/- that after accounting the purchases during the year again the payments were made and there is one more ledger account which shows receipt of ₹ 78,60,000/-, the total of which comes to ₹ 78,84,133/-, which is the exact figure appearing as sundry creditor in the balance-sheet. The assessee also produced the confirmation from Tube India before the Assessing Officer, therefore, we are in agreement with the finding of the Ld. Commissioner of Income Tax (Appeal) that the addition was not justifiably made. So far as, the identity of M/s Tube India is concerned, which is not in doubt and it is not an unknown party. - Decided against revenue
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