Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2014 (1) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (1) TMI 399 - HC - Income TaxUnexplained cash credits - Held that:- As the purchase price for the export entitlements was paid through account-payee cheques, the purchase could not be fully disallowed - One M/s Krishna Enterprises had sold such export entitlements of the same category to M/s Pashupati Fabrics Ltd. at a rate of Rs.8 per sq. mtr - The CIT (A), based on this rate made an inference that any amount paid by the assessee in excess of Rs.8 per sq. mtr. should be disallowed. Genuineness of purchase transactions - Held that:- The material which was purchased from three parties was in due course of business against issue slips which were maintained by the assessee for the issue of raw material for production of finished goods - The CIT (A) also relied on the primary evidence which had been produced by the assessee including the stock-register - Since complete details had not been furnished, the CIT (A) held that certain amount of dis-allowance would be necessary though not entirely - The CIT (A) noted that the average rate paid by the assessee for the purchase of fabrics during the year was Rs.125.35 per mtr whereas the average rate paid in respect of the three disputed parties was Rs.165.40 per sq. mtr - The CIT disallowed the excess amount - Decided against Revenue.
|