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 2009 - AT - Income TaxBogus purchases - AO has doubted the genuineness of purchases only to the extent of 2.52% - HELD THAT:- Total estimated value of the project for the year under consideration is more than ₹ 300 crores. Therefore, it would be a futile exercise to doubt the genuineness of a meagre amount of ₹ 7.86 crores. Moreover, as mentioned elsewhere, the purchases were duly supported by bills and vouchers. The payments have been made through account payee cheques. The payments are reflected in the bank statement of the payer and the payee. We, therefore, do not find any reason for doubting the genuineness of these purchases. While restricting the disallowance the reasoning given by the first appellate authority is not only absurd, but illogical. The first appellate authority has heavily relied upon the decision in the case of Vijay Proteins Ltd [1996 (1) TMI 144 - ITAT AHMEDABAD-C] Considering the facts of the case in totality, as discussed hereinabove, we are of the considered view that that entire addition deserves to be deleted. We, accordingly, set aside the findings of the CIT(A) and direct the AO to delete the entire addition. - Decided in favour of assessee.
|