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2015 (4) TMI 95 - AT - Income TaxDisallowance of trading purchases - CIT(A) restricted the disallowance to 25% instead of deleting the entire disallowance - Held that:- Seen in the light of the mandatory disclosure requirements of the Companies Act 1956, it is seen that the impugned purchases and sales have not been disclosed by the Assessee in its audited account and therefore the submission of the assessee that it had entered into trading transactions and had maintained the quantitative records does not carry any force and therefore, no disclosure of sales and purchases on the part of the Assessee goes to prove, that no such sale and purchases were made. We are of the view that the facts in the case of Vijay Protiens (1996 (1) TMI 144 - ITAT AHMEDABAD-C) as relied upon by CIT(A) are different and therefore the ratio is not applicable to the present facts because in the case of Vijay Protiens (supra) goods were found to have been purchased and sold which remained unaccounted, the goods which were purchased were used by the assessee in the production activity and therefore in those circumstances 25% of the purchases were disallowed. However in case in hand the Assessee could not prove the sale and purchases by placing any credible material on record. Thus CIT(A)'s action of restricting the addition cannot be upheld and therefore in the present facts, the AO was justified in making the addition and therefore we uphold the action of the AO. - Decided against assessee.
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