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2011 (7) TMI 1127 - AT - Income TaxUnaccounted Purchases - After issuing notice u/s 133(6), AO, treated some purchases as bogus - Assessee contended that when since the department has accepted the sale as genuine, obviously the corresponding purchase would also be genuine - HELD THAT:- So far as the genuineness of the purchase is concerned, we find that the assessee has claimed to have purchased the finished goods. However, in respect of all the parties, on the sale bills, there was no telephone number or no printed bill number. The assessee was unable to produce the confirmation from any of the parties. These facts clearly establish that the assessee did not make the purchase from the above parties and claim of such purchases was not genuine. - Decided against the assessee. Estimation of income - HELD THAT:- On this fact, the decision of the ITAT in the case of M/S. SANKET STEEL TRADERS VERSUS. ITO, WARD-5 (1) VADODARA. [2011 (5) TMI 961 - ITAT AHMEDABAD], would be squarely applicable. We respectfully following the above decision of the restrict the disallowance to 12.5% of the purchase. We direct the AO to work out disallowance accordingly. Decided partly in favor of assessee.
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