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2017 (10) TMI 928 - ITAT MUMBAIUnexplained Purchases - accommodation bills of purchases - additions based on information was received by the A.O from the investigation wing - Held that:- We are not persuaded to be in agreement with the contention of the assessee that the A.O had merely proceeded on the basis of human probabilities and suspicion, as we find that the assessee had after duly appreciating the evidence available on record carried out the exercise of estimation of the trading results in the hands of the assessee, which we are of the considered view can safely be characterised as a well reasoned one. That as regards the objection of the assessee to the reference of the G.P. rate of certain parties, we are of the considered view that the same were duly confronted to the assessee by the A.O during the course of the assessment proceedings and no objections at any stage was raised as regards the same by the assessee. Still further, we find that it is not a case that the A.O had transposed the trading result of any concern as against that of the assessee, but had merely benchmarked the trading results of the assessee in the backdrop of that of certain concerns operating in the trade line of the assessee, keeping in view the turnover parameter. We further find that the assessee had assailed the addition of ₹ 41,37,804/- made by the A.O for the reason that he had referred to the same as an addition made on account of ‘Unexplained expenditure’ while culminating the assessment. We are unable to accept the aforesaid contention of the assessee, for the reason that though it remains as a matter of fact that the A.O had used the term ‘Unexplained expenditure’ in the body of the assessment order, but then he had qualified the same by specifically using the term ‘as discussed above’, which we find was used in context of the observations recorded by the A.O at Para 3.11, which clearly revealed that the addition of ₹ 41,37,804/-(supra) was made in the hands of the assessee on account of ‘Unexplained Purchases’.
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