Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2014 (2) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (2) TMI 1373 - HC - Income TaxBogus purchases u/s 69C - HELD THAT:- In the present case, though it may appear that the purchases have been shown to have been made through M/s. Vishal Traders but supplied by some other agency, in absence of other additional facts noted by this Court in case of Sanjay Oilcake Industries [2008 (3) TMI 323 - GUJARAT HIGH COURT ] gross ad hoc addition of 25% may not be justified. In the present case, the assessee could produce before the authorities the precise rate at which the purchases were made from M/s. Vishal Traders and other suppliers to demonstrate that the purchases made on the same day carried the same price. This would substantially eliminate the angle of the purchase price being artificially inflated. Additionally, the Tribunal also noted other parameters such as higher net and gross profit rates of the present year compared to the earlier years of the recent past - no question of law arises Purchases from an unregistered dealer M/s. Amber Trading Company - A.O of the firm M/s. Amber Trading Company treated the URD purchases of M/s. Amber Trading Company as genuine. Once, the URD purchases of M/s. Amber Trading Company is accepted as genuine by the A.O of that party, the disallowance made by the A.O in this regard cannot be sustained because it has no legs to stand. Accordingly, we decide this aspect of the matter in favour of the assessee. Treating the loss suffered by the assessee as speculation loss - HELD THAT:- Tribunal concurrently, on the basis of evidence on record, held that it was a case of hedging transaction and not one of speculation loss. Such being pure question of fact and the Tribunal's decision not being shown to be per verse, such question is also not required to be considered. Appeal admitted for consideration - Whether the Appellate Tribunal has substantially erred in upholding the order of the CIT(A) in deleting addition made by the Assessing Officer on account of unutilized CENVAT/MODVAT credit?
|