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2016 (7) TMI 686 - AT - Income TaxBogus purchase - Held that:- Though purchases were from bogus parties nevertheless purchases themselves were not bogus. In our opinion, there is a merit in the contention of the learned counsel for the assessee that in the absence of the purchases, there could not be sales worth ₹ 4,03,34,375. Not only this, the Assessing Officer has also accepted the opening and closing stock as shown by the assessee in the books of account. The Assessing Officer has not doubted these sales. If the Assessing Officer's version is accepted then the gross profit works out at 83 per cent. which is unbelievable and unimaginary as sales cannot be the profits. Thus, considering the entire facts and circumstances of the present case, we do not see any justification in making the addition on account of bogus purchases. - Decided in favour of assessee
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