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2018 (11) TMI 638 - AT - Income TaxBogus purchases - deemed income u/s 41(1) - Held that:- AO did not brought any evidence on record to hold that such liability has ceased to exist or remitted by the creditor; that the said liability is being shown as payable by the assessee in his balance sheet reflects that this liability is payable by the assessee and that the confirmation from M/s Hindustan Trading Company which was duly signed by the said party further goes to prove that such sum has not been remitted by the creditor. The entire disallowance on account of bogus liability is bad in law in the absence factual material on record. As such, we find no error in finding of CIT(A) on this issue and accordingly confirm finding of CIT(A) on this issue. All the grounds pertaining to bogus liability are rejected.
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