Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (12) TMI 110 - AT - Income TaxAddition on bogus purchase bills - corroborative evidence to prove that assessee company has inflated the expenditure by passing accommodation entries - Held that:- From the record we found that the Statement recorded on 21/11/2011 were duly retracted on 1/12/2011 i.e within one month. Further said retractions were conveyed to the survey team on 12/3/2012 i.e before the survey report and to the AO on 14/3/2012 i.e before any proceedings were initiated by the A.O. Hence, retraction being on affidavit was legal and valid and was not belated. Further retraction was supported by explanation of impounded documents to the Survey team. The impounded document did not contain any information which was not recorded in the books of accounts. No addition can be made merely on the basis of statement unless same is corroborated by documentary evidence. From the record we also observe that corresponding income booked by the assessee has not been disputed by lower authorities meaning thereby, income earned corresponding to the expenditure alleged to be bogus has been duly accepted by the lower authorities. Entire expenditure so incurred which is duly supported by income declared by assessee and accepted by Department cannot be declined. Taking average profit declared by the assessee in the earlier five years which is 12.99% it is very relevant to find out if any lower income has been shown by the assessee in any of the years to ascertain the additions warranted - addition can be restricted to the difference in gross profit declared by the assessee during the years under consideration as compared to the average gross profit rate of earlier five years which is 12.99%. - Decided partly in favour of assessee.
|