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2016 (5) TMI 704 - AT - Income TaxDisallowance u/s. 40A(3) on account of unaccounted cash purchases - making an addition of outstanding liability u/s. 41(1) - Held that:- We find from the facts of the case that the assessee has entered into cash transactions as per seized registers seized from the premises of the assessee which clearly revealed that there is cash transaction of the purchases and the A.O. has made estimation from these seized materials for all these seven years. We further find that even the outstanding liabilities and the provisions made are based on seized registers and balance-sheet filed by the assessee as per old returns. The CIT(A) confirmed the computation of unaccounted cash purchases calculated and estimation of disallowance based on seized material and on the basis of the reasonable projection made out of the entries recorded in the seized Annexure A1 and A 4 found during the course of search u/s. 142(1) of the Act on the premises of the assessee on 13.3.2008. Further, the CIT(A) also confirmed the outstanding liabilities and provision for the reason that no confirmation for such creditors was furnished by the assessee and genuineness of such liabilities was not proved to the satisfaction of the A.O. In view of these facts and circumstances we find no infirmity in the orders of the lower authorities and hence, the order of CIT(A) is confirmed. Similar are the facts in other years and additions are also on identical grounds, hence taking a consistent view, we dismiss all these seven appeals of the assessee. - Decided against assessee.
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