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2020 (9) TMI 912 - AT - Income TaxBogus purchases - estimated addition @12.5% - HELD THAT:- Although the assessee defended the purchases by furnishing purchase invoices, bank statements evidencing payment through banking channels, quantitative details etc. but failed to produce any of the suppliers for confirmation of transactions. Assessee also failed to furnish delivery challans, transport receipts, octroi receipts etc. to substantiate the delivery of material. Accordingly, a view was taken that the purchases were inflated to suppress the true profits. AO estimated an addition of 12.5% against these purchases following the decision in CIT V/s Simit P. Sheth [2013 (10) TMI 1028 - GUJARAT HIGH COURT] and completed the assessment. Assessee remained negligent in attending the appellate proceedings despite being provided with various opportunities of being heard. Keeping in view of principle of natural justice and keeping in mind the facts and circumstances, we deem it fit to grant another opportunity to the assessee to represent his case before first appellate authority. Accordingly, the case stands remitted back to the file of Ld. CIT(A)for re-adjudication with a direction to the assessee to defend his case before first appellate authority failing which Ld. CIT(A) shall be at liberty to adjudicate the appeal on the basis of material on record. - Appeal stands allowed for statistical purposes.
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