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2017 (11) TMI 1654 - AT - Income TaxBogus purchases - Held that:- When the sales figures shown by the assessee has been accepted in totality, the entire purchases made by the assessee cannot be held it to be bogus since it is common knowledge that sales of goods cannot taken place without purchase of goods in the first place In the light of the evidences adduced to prove the genuineness of the transactions and when the fact remains that the sales has been accepted by the Assessing Officer in totality, the action of the Assessing Officer to disallow the entire purchases and goods made from M/s. Vikash Iron & Steel Co. Ltd. on the basis of a general statement (without naming the assessee) on the ground it indulged in giving fake bills for commission and that too without the adverse statement being tested on the touch stone of cross-examination cannot stand the scrutiny of law and has to fall and therefore, in the light of the aforesaid discussion, we are inclined to delete the disallowance - Decided in favour of assessee.
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