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2017 (3) TMI 527 - AT - Income TaxBogus purchases addition - revision u/s 263 - cash payments - Held that:- As payments are made in cash, the Assessing Officer as well as the ld. CIT(Appeals) have rightly suspected the genuineness of the same. The assessee has not been able to lead any third party evidence in support of its claim. The only valid argument is that there could be no sales without purchases. But the price at which the goods were purchased remained a grey colour when admittedly the payment was made in cash. As the undisputed fact that the payments were made in cash under section 40A(3) is attracted as pointed out by the ld. CIT(Appeals) in his order passed under section 263 of the Act. In view of the above discussion, it of the view that section 40A(3) has to be applied and the disallowance restricted to this amount. - Decided partly in favour of assessee
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