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2019 (3) TMI 1652 - AT - Income TaxBogus purchases - Reopening the assessment made u/s. 143 r.w.s 147 - addition to the extent of 8% of the purchases treated as non-genuine - HELD THAT:- The parties have confirmed by filing replies to notices u/s. 133(6) along with the ledger account of the assessee in their Books of Accounts, copies of sales invoices issued by them to the assessee, thereby statements reflecting payments made by the assessee to them, copy of acknowledgment of Income Tax Returns filed by them to show that the transaction of sales made to the assessee are genuine. Gross Profit margin shown by the assessee is ranging in between 7.02% to 7.62% consistently. Disallowance / estimation of profit of purchases by treating them as bogus cannot be made only on the statements recorded from third parties, especially when the suppliers have responded to the notice u/s. 133(6) of the Act and filed all the necessary documents to prove the genuineness of the purchases made by the assessee. Thus the grounds raised by the assessee on merits are allowed. Disallowance towards non-genuine purchases for all the Assessment years in appeal and direct the Assessing Officer to delete the addition/disallowance made towards non-genuine purchases. As deleted the disallowance/addition on merits the grounds raised challenging the reopening of assessment is not adjudicated. - Decided in favour of assessee.
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