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2015 (12) TMI 1686 - AT - Income TaxBogus purchase - Held that:- Non receipt of goods from the supplier and that the invoices were only pro-forma invoices, the AO ought to have examined the suppliers to find out the truth or otherwise of the claim made by the Assessee. The mere presence of authorization letter to truck drivers would not in our view prove the case of the revenue. Each of the 4 invoices are accompanied by delivery challan and in three of the delivery challans i.e., except the delivery challan M/S.Narayani Traders dated 24.7.2007 for ₹ 1,02,000/- none of the delivery challan evidence acknowledgement of having taken delivery of goods. Since delivery of goods under delivery challan dated 24.7.2007 for ₹ 1,02,000 is acknowledged and since the AO has presumed that these goods were sold by the Assessee, we are of the view that 5% G.P. on the value of the purchases alone should be added, as pleaded by the learned counsel for the Assessee before us. In respect of the other three purchases the addition is directed to be deleted as there is no evidence of the purchases having actually been completed by the Assessee. Undisclosed business income - addition by the AO by artificially calculating the figures of stock - Held that:- The survey was conducted on 10.3.2008. There was no excess quantity of stock found physically in the business premises of the Assessee. The stock statement given to the bank is dated 29.2.2008. This stock statement was obviously incorrect as it was not in tune with the physical stock with the Assessee. In such circumstances the plea of the Assessee that the statement of stock given to the bank showed inflated figures and was only for the purpose of availing credit facility from the bank stands established. Therefore the impugned addition ought to have been deleted by the CIT(A).
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