Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (10) TMI 1489 - AT - Income TaxDisallowance u/s 68 with regard to bogus purchases - CIT-A reducing part addition - none of the party has replied in response to the notice u/s 133(6) - Held that:- The reply from parties was duly filed before the AO prior to the completion of the assessment u/s 143(3) of the Act. But the AO has not considered the same during the assessment proceedings. Similarly, the AO has not commented anything negative about the reply filed during the remand proceedings. Therefore, in the absence of any defect as pointed out by the AO, we are inclined not to interfere in the order of ld. CIT(A). The provision of Section 68 can be attracted if there is any sum found credited in the books of accounts of the assessee. There was no cash received by the assessee from the aforesaid parties. The accounts of the parties were credited by the assessee for purchases made from them. Therefore, in our considered view the provision of Section 68 cannot be applied to the case on hand. - Decided in favour of assessee.
|