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2016 (7) TMI 63 - HC - Income TaxDisallowance of purchase expenditure - corresponding sales against these very purchases have been offered and accepted for tax - Held that:- This is not a case where purchases have accounted for and suppliers were not traceable or not available at the address given by the assessee. This is a case where the amount has been received back to the assessee from the suppliers of which expenditure on account of purchases accounted for in the books of account. Ends of justice would be met if we grant deduction at 25% for purchase expenditure, as admittedly corresponding sales against these very purchases have been offered and accepted for tax. Accordingly, we modify both the impugned orders and hold that the Tribunal has committed an error in disallowing the purchase expenditure and direct that deduction at 25% of the purchase expenditure may be allowed in both these cases. - Decided in favour of the assessee.
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