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2014 (6) TMI 741 - AT - Income TaxGenuineness of purchases - Deletion of addition on account of unverifiable purchases – Disallowance of fictitious purchases - Held that:- The assessee was able to prove the genuineness of two items of purchase of diamonds from Surat parties - The assessee has filed necessary documentary evidences in support of its claims of purchase in the form of purchase invoices, evidences of payment through banking channels during the year and outstanding amounts in subsequent year, confirmations from the transacting parties and relevant extracts of the bank statements of the transacting parties, books of accounts and stock statements - the purchases of diamond from M/s. Sanjay Enterprises, Surat by the assessee was accepted in scrutiny assessment framed u/s 143(3) of the Act - The sales figures of the assessee have not been disturbed by the department. The CIT(A) has recorded that the AO has not verified the records of the transacting parties which are available in his own Range and the details of which was provided by the assessee - even during the course of remand proceedings, the AO has not verified the facts either from the IT records or by issue of summons u/s 131 of the Act to the transacting parties - there is no mistake in the order of the CIT(A) in holding that the assessee has been able to establish genuineness of the purchases from the two Surat parties – Decided against Revenue.
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