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2016 (1) TMI 355 - AT - Income TaxDisallowance of non-genuine Purchases transactions from two parties - Held that:- In this case, the assessee has tried to prove the genuineness of the purchases, firstly, by producing the confirmation of the accounts from the said parties filed earlier at the stage of the assessment proceedings; secondly, all the details of payment made through account payee cheques duly debited from the account of the assessee and credited to the accounts of the suppliers were shown; and lastly, in case of one supplier, the assessee had also filed a copy of its bank statement to show the corresponding credit entries. Thus, under these facts and circumstances the entire purchase amount cannot be added as income from undisclosed sources. However, in such cases, at the most, the gross profit element on such purchases could be added, as contended by the ld. counsel. Accordingly, we direct the AO to apply the gross profit of 21.29% for the purchase aggregating to ₹ 52,36,013/-. After verifying the contention of the assessee that, actual purchase transaction from Gausiya Sea Foods was only ₹ 16,82,212/-. Thus, the addition would be restricted on gross profit on such purchases. - Decided partly in favour of assessee
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