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2016 (11) TMI 328 - AT - Income TaxBogus purchases - Unverifiable purchases - AO has estimated 25% of purchases whereas the ld CIT(A) has reduced the same to 15% - Held that:- It is noted that the decisions in case of Anuj Kumar Varshney and others [2015 (4) TMI 533 - ITAT JAIPUR ] were in respect of companies engaged in similar line of business i.e, gems and jewellery. Further, similar arguments were made in terms of following the past history of the assessee in those cases as well. The Coordinate Bench has held that the past history can be taken as a basis where the same is reliable. In the instant case, in the past years, books of accounts have been rejected and profit has been estimated and therefore, it cannot be said with certainty that the past history will be the reliable basis in the instant case. In our view, ld CIT(A) has rightly estimated unverifiable purchases @ 15% based on decision of the Coordinate Bench in case of Anuj Kumar Varshney (supra). We accordingly, confirm the order of the ld CIT(A). Disallowance of commission on sales to Travel Corporation of India [TCI] - period to which the expenditure pertains - Held that:- Confirmation from TCI clearly shows that this expenditure pertains to F.Y. 2008-09. Also the agreement which states that this commission pertains to a period of 15 months has not been signed by the assessee. In view of the above discussion, it is held that this expenditure pertains to the previous year under consideration and disallowance of prepaid expenses of ₹ 15,00,000/- is directed to be deleted
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