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2017 (7) TMI 1083 - AT - Income TaxAddition of bogus purchases - Held that:- There is no material on record to conclusively prove that the purchases made by the assessee are bogus purchases and nothing has been brought on record by the revenue to suggest that the information gathered by the Sales Tax Department conclusively prove that the said dealers are providing only the accommodation entries to the assessee’s before us. Thus we hold that addition made u/s 69 cannot be sustained. At the same time keeping in view the nature of the business of the assessee and the fact that the assessee is making local purchases the possibility of assessee making purchases without any transportation bills, delivery challans etc., in gray market on cash cannot be ruled out. Therefore, keeping in view the facts and circumstances of the case and the Gross Profit declared by the assessee during the current assessment year as well as in the earlier assessment years, we direct the Assessing Officer to restrict the disallowance of purchases to meet the anomalies and to cover up the leakage of revenue on defined percentage.
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