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2017 (2) TMI 170 - AT - Income TaxBogus purchases - addition made under Section 69C - addition on basis of information gathered by the Sales Tax department - Held that:- There is no material on record to conclusively prove that the purchases made by the Assessee are bogus purchases and nothing is brought on record to suggest that the information gathered by the Sales Tax department conclusively proves that the dealers are providing only the accommodation entries to the Assessee before us, thus we hold that addition made under Section 69C cannot be sustained. At the same time, keeping in view the nature of business of the Assessee and the fact that the assessee is making local purchases without any transportation bills, delivery challans etc., the possibility of the Assessee making purchases in grey market on cash cannot be ruled out. Therefore, keeping in view the facts and circumstances of the case, we direct the Assessing Officer to disallow 2% of the above purchases to meet the anomalies. - Decided partly in favour of assessee
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