Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (8) TMI 1768 - AT - Income TaxAddition of bogus purchases - HELD THAT:- There were confirmation letters filed by the suppliers, copies of invoices for purchases as well as copies of bank statement all of which would indicate that the purchases were infact made. Merely because the suppliers have not appeared before the AO or the CIT(A), one cannot conclude that the purchases were not made by the assessee. Disallowance merely on the basis of suspicion because the sellers and the canvassing agents have not been produced before them is not warranted - thus the order of the Tribunal is well a reasoned order taking into account all the facts before concluding that the purchases was not bogus - See NIKUNJ EXIMP ENTERPRISES PVT LTD. [2013 (1) TMI 88 - BOMBAY HIGH COURT] and SIMIT P SHETH [2013 (10) TMI 1028 - GUJARAT HIGH COURT]. The estimation of rate of profit return must necessarily vary with the nature of business and no uniform yardstick can be adopted - Disallowance to the extent of 12.5 percent is allowed – Decided against the Revenue. - Decided in favour of assessee. Deduction from WIP in connection with non-genuineness of the claim of unsecured loan from 35 parties - HELD THAT:- The amount was disallowed in A.Y. 2008-09 on the basis of disallowance in the A.Y. 2009-10 which was to the tune of ₹ 1,44,935/- related to 12 parties. Out of these 12 parties only two parties were carried forward from earlier year. Remaining ten parties were reflected in the A.Y.2009-10. The total interest of two parties on ₹ 50,000 was only ₹ 1,02,280/- instead of ₹ 63,41,202/- which was not related to relevant assessment year. CIT(A) calculated the interest on account of factual basis in the relevant assessment year. Nothing came into notice that the calculation is factually wrong, therefore, in the said circumstances, we are of the view that the CIT(A) has decided the matter of controversy judiciously and correctly which is not liable to be interfere with at this appellate stage.
|