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2016 (9) TMI 384 - AT - Income TaxAddition on account of purchases made from suspicious dealers - dealers which are allegedly involved in issuing bills and purchases made from the parties in dispute are not genuine - CIT(A) restricted the addition to 5% of the alleged purchases and deleted 95% of the purchases made treating them as genuine purchases - Held that:- It is not in doubt that the assessee has made purchases and also made sales and they are duly accounted for in the books of account and offered to tax therefore entire purchase made cannot be treated as unexplained expenditure. No valid reason to interfere with the observations and to hold that the purchases made are bogus for the reason that none of the findings of the Ld. CIT(A) have been rebutted by the Revenue. Also as there is no basis for sustaining the addition of 5% of purchases u/s. 69C since the purchases have been held to be genuine and there is no scope for sustaining the same partly. Thus, the cross objections filed by the assessee are allowed.
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