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2012 (12) TMI 366 - AT - Income TaxDisallowance u/s 40A(2)(b) – Excess payment to related parties - Purchase of goods at higher prices then market price – Held that:- As the AO failed to consider that the purchases from related parties were of finished and semi-finished leather and whereas, the purchases from unrelated concerns were of raw leather. Moreover, the types and quality of skin purchased were also different. Without going into these details, the AO merely considered the average rate of purchases and reached a conclusion that the prices paid to the related parties were excessive for which there is no basis. Delete the addition. Appeal decides in favour of assessee
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