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2019 (11) TMI 266 - AT - Income TaxValidity u/s 147/143(3) - addition u/s 68 - bogus purchases - HELD THAT:- Payments against the said purchases were made by the assessee by account payee cheques and there were corresponding sales made by the assessee out of the said purchases. He, however, doubted the corresponding sales claimed to have been made by the assessee since the same, according to him, were unverifiable in the absence of details furnished by the assessee regarding names and addresses of the parties to whom the same were made. He accordingly treated the proceeds of such sales made by the assessee in cash as unexplained cash credits and made addition u/s 68. No addition was made by the AO to the total income of the assessee in the assessments made under section 147/143(3) for both the years under consideration on account of the alleged bogus purchases, which formed the basis of reopening and the addition was made on account of different issue by treating the proceeds of the corresponding sales made out of such purchases as unexplained cash credit under section 68 Addition made by the AO to the total income of the assessee in the assessments completed under section 147/143(3) for both the years under consideration on a different issue, which did not form the basis of belief entertained by the AO as per the reasons recorded, is not sustainable and the ld. CIT(Appeals) is not justified in sustaining the same. Delete the addition made by the AO and confirmed by the CIT(Appeals) u/s 68 in both the years under consideration and allow these appeals of the assessee. - Decided in favour of assessee.
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