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2018 (4) TMI 640 - AT - Income TaxBogus purchases - Held that:- During the course of assessment proceedings, it was explained by the assessee in reply to the query raised by the A.O. that purchase of diamonds made from M/s. Nazar Impex Pvt. Ltd. vide bill No. In IPLS/PD/JUL/16/10-11 dated 14.07.2010 was genuine. It was also pointed out that the payment against the said bill was settled by account payee cheque and the quantity of diamond purchased was not only entered into the stock register, but even corresponding sale of the same was duly recorded. The relevant documentary evidence was also filed by the assessee before the A.O. to support and substantiate his explanation. As rightly contended by the learned counsel for the assessee, the authorities below however brushed aside this cogent evidence produced by the assessee and treated the purchase of diamonds by the assessee from M/s. Nazar Impex Pvt. Ltd. as bogus merely on the ground that there was some delay in payment by the assessee against the said purchase. No enquiry whatsoever was made by them to verify the claim of the assessee for the purchase of diamond in question from M/s. Nazar Impex Pvt. Ltd. which was duly supported by the relevant documentary evidence. - Decided in favour of assessee.
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