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2016 (6) TMI 1223 - ITAT AMRITSARAddition u/s 68 - Held that:- On behalf of the assessee, a comparative chart of net profit rate of the assessee for the assessment years 2005-06 to 1011-12 has been filed before us. In the earlier years also, no such addition was made. For the assessment year 2007-08, under scrutiny assessment, the assessment was made at 8%. The position remained much the same for the assessment year 2008-09. The year under consideration is assessment year 2009-10. The material supplied to the assessee by the concerned department is part of the assessee’s turnover. The net profit rate of the assessee for the year under consideration was in line with the preceding assessment year. Further, the trade creditors in the earlier years, i.e., A.Ys. 2007-08 & 2008-09 stand accepted in scrutiny assessments. Thus, the genuineness of the expenses under consideration cannot be doubted. Moreover, the genuineness of the expenditure was not at all called into question. It was only that non verification thereof raised doubts of the in-occurrence thereof. Then, even if the credits concerning the purchases and transportation of the material are not to be accepted, as discussed, still, the provisions of section 68 of the Act cannot be invoked to make the addition. - Decided in favour of assessee.
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