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2020 (9) TMI 90 - AT - Income TaxBogus purchases u/s 37(1) - Reopening of assessment u/s 147 - assessee failed to confirm the purchases - CIT(A) deleted the addition - HELD THAT:- Case of the assessee was reopened on the basis of information received from the DIT (Inv.). The doubtful purchase was found for the F.Y.s 2005-06 to 2012-13. The AO issued the notices u/s 133(6) which were not served. AO raised the addition on the basis of peak purchase - CIT(A) has deleted the same on the basis of this fact that the assessee’s unit was 99% exports unit and the sale was supported by documents of export and stock register confirmed sale and purchase. The Tax Audit Report confirmed the same. The stock statement produced to the banks was subjected to verification of the third party and the assessee was having its own vehicle for transporting of goods from one place to another. CIT(A) also observed that the AO nowhere brought any substantial material to raise the addition. AO nowhere brought the material on record to prove the fact that the purchase was bogus. The documents relied upon the CIT(A) was already available with the AO which were not considered and discussed. CIT(A) has considered the all relevant material on record and arrived at this conclusion that the addition is not based upon any material available on record. No distinguishable material has been produced on record which required interfere with the order passed by the CIT(A) in question. CIT(A) has decided the issue judiciously and correctly which is not liable to be interfere with - Decided against revenue.
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