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2019 (10) TMI 384 - AT - Income TaxBogus purchases - rotating funds - CIT-A restricted the disallowance to the peak of purchases HELD THAT:- In the instant case the notices issued by the AO u/s 133(6) were returned un-served by the postal authorities with the remarks “not known”. The assessee failed to produce the parties before the AO for examination. Though the assessee was not able to produce the above parties before the AO for examination, it is a fact on record that the AO has not doubted the sales. Thus it is logical that without corresponding purchases, the assessee could not have made the sales. Such being the facts, the case of the present assessee is distinguishable from the case laws relied on by the Ld. DR. Considering the entirety of facts and circumstances of the case, we find that the Ld. CIT(A) has rightly restricted the disallowance to the peak of purchases of ₹ 31,50,000/- taken as an alternate ground by the assessee. Thus we confirm the order of the Ld. CIT(A). - Decided against revenue
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