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2015 (5) TMI 76 - DELHI HIGH COURTAddition under Section 41(1) - CIT(A) restricted the addition also confirmed by ITAT - Held that:- What is apparent is that the AO based its conclusion on the basis of a narrow premise i.e. lack of response by the three parties i.e. M/s A.L. Metal & Methods Pvt. Ltd., M/s Laxmi Enterprises and M/s Komal Forging. The CIT (Appeals) noticed the inherent contradiction in the AO’s action - on the one hand, accepting the higher GP Rate, which in turn was based upon the total turnover of the assessee, while on the other disallowed the entire amount of purchases from the three parties and not only with respect to the amount outstanding. Thus the CIT (Appeals) was justified restricting the addition to ₹ 28,87,305/- in the facts of the case, since that was the amount indicated as outstanding as on 31.03.2003. No substantial question of law arises. - Decided against revenue.
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