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2016 (7) TMI 1237 - AT - Income TaxAddition of bogus purchases - Held that:- AO and CIT(A) not referred in their order about the filing of affidavit by the proprietor of M/s Astha Silk Industries & M/s Shree Ram Sales & Synthetics. The assessee has placed on record the ledger account of M/s Manoj Mills, M/s Astha Silk Industries & M/s Shree Ram Sales & Synthetics along with the bills and delivery challans wherein payment made through cheques are duly reflected. The sale of the assessee is not disputed by AO and ld CIT(A). Thus, evidences are sufficient to show that actual delivery of goods was received by assessee from the said parties. While making the submission, DR for Revenue has not countered any of the evidence placed on record by the assessee. With these observations, we hold that AO made the addition on the basis of mere presumption and the ld CIT (A) also sustained the 25% of addition without giving any reasoning. Therefore, keeping in view the pacularity of facts and circumstances of the case, the entire addition made by the AO deserves to be deleted. Hence, this Ground of appeal raised by the assessee is allowed.
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