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2014 (8) TMI 1005 - AT - Income TaxAddition relating to bogus purchases - Held that:- The undisputed facts are that the purchases were supported by bills, the payments were made by account payee cheque and the payments were duly reflected in the bank statement of the assessee. A perusal of the statement of the diamond traded during the year under consideration shows that the assessee purchased 1358.54 carats from M/s. Zalak Impex on 1.8.2005, the same was exported on 5.8.2005 and 871.57 carats were purchased on 2.8.2005 from M/s. Zalak Impex and were exported on 12.8.2005. No adverse inferences have been drawn by the AO in so far as exports of diamonds are concerned. Without purchases there cannot be any sales. The entire additions made by the AO are based on assumptions and presumptions. We, therefore, decline to interfere with the findings of the Ld. CIT(A). - Decided against revenue
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