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2013 (8) TMI 996 - AT - Income TaxAddition on account of damaged/expired goods - Held that:- It is practice in the pharmaceuticals business that some products have to be expired or damages and all the retailers are not able to sell the goods within expiry of date, even branded goods some time expired. The appellant had shown expiry of goods’ percentage more than 4%. During the year, goods expired was ₹ 7,94,441/- and goods replaced at ₹ 1,46,60,484/- which is 2.46%, is reasonable. Keeping in view the past history of the assessee, the ld. A.O. had not brought on record any evidence that the appellant had made sale outside the books. Even, no evidence during the course of search were found, which was relevant to A.Y. 2005-06. The Settlement Commission also accepted the assessee’s disclosure of further any additional disclosure on this issue Addition on account of non-genuine payment to M/s. Saffroys - Held that:- As the appellant had filed confirmation before the A.O. with signature and PAN no., if she has any doubt on confirmation, she should have verified this confirmation from her counter part at Kolkata. Ld. A.O. had given sufficient power under the IT Law, which has not been used by her. In absence of any contrary evidence against the appellant, the addition cannot be confirmed. Addition on account of bogus purchases - Held that:- The search was relevant to A.Y. 2005-06, whatever evidences found during the course were relevant to A.Y. 2005-06 not 2006-07. The appellant had furnished the confirmation with PAN no. with full address of the purchase parties. On the basis of past history, no addition can be made without brining out any contrary evidence on record. If the A.O. has any doubt about the genuineness of the purchase, she should have inquire directly form the supplier or made any inquiry as per law. The ld. A.O. had not made out the case on the basis of evidence. The addition was made on the basis of evidence found in past, cannot be sustained
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