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2015 (6) TMI 309 - ITAT DELHIBogus purchases - CIT(A)sustaining the addition amounting to ₹ 68,31,195/- on account of estimated gross profit on the sale of items in question - Held that: - This cannot be held to be a case of rejection of sales, but essentially it is a case of rejection of part purchases and, accordingly, of part sales. In our opinion, keeping in view that the purchases made by assessee being not fully established except identity of parties, particularly in view of the fact that there was no evidence to establish that the impugned purchases were included in the sales-tax returns of the parties, ld. CIT(A)’s conclusion of arriving at a reasonable estimate, considering the entire conspectus of t he case cannot be faulted. We, accordingly, confirm the order of ld. CIT(A) on this count.- Decided against assessee. Rejection of books of accounts - CIT(A) making addition on the basis of G.P. rate - Held that:- nfirmity in the order of ld. CIT(A) on this count also because when-ever AO examines specific issues in course of assessment and make additions/ disallowances qua those issues, then impliedly part books stand rejected. The AO is not entitled to altogether discard the evidence of the books of account. It is open to the AO to accept assessee’s books with regard to certain kind of transactions and reject them in respect of other transactions as was held in Ganeshilal Chhappan Lal Vs. CIT [1940 (9) TMI 17 - ALLAHABAD HIGH COURT]. Therefore, there is nothing wrong in accepting the book results to the extent of no discrepancy found. The AO though had rejected the books of a/c, but had made addition only in respect of bogus purchases. Thus, impliedly the books of a/c were rejected to this extent only, which was sustained by ld. CIT(A), but he reduced the addition by applying only estimated gross profit to the impugned transactions. Therefore, we uphold the ld. CIT(A)’s action in part rejection of books of account. - Decided against assessee.
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