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2021 (10) TMI 437 - AT - Income TaxAddition of unsecured loans by treating the same as accommodation entry - Addition based on transaction of bogus purchases - HELD THAT:- We notice that AO has merely proceeded to make addition of unsecured loans merely because the Rajat Group of Companies involved in the transaction of bogus purchases and rejected the evidences submitted before him i.e. assessee has submitted the confirmation balance and the transactions were only routed through bank and there is nothing on record brought by the AO to believe that these transactions were non-genuine and except relying on the fact that the assessee is taken some accommodation entries from Gautam Jain Group and they were subjected to search proceedings. Therefore, we inclined to accept the findings of the Ld. CIT(A). Bogus purchases - CIT(A) has agreed with the findings of the Assessing Officer that certain transactions entered by the assessee with Frontline Diamonds Pvt. Ltd. and Rajat Diamond Pvt. Ltd are non-genuine - HELD THAT:- We are of the opinion that the purchases are no doubt bogus at the same time, the Revenue has accepted the sales/stock declared by the assessee. Therefore, we are in agreement with the findings of the Ld. CIT(A) that as decided by various Hon’ble High Courts held that the additional benefit acquired by the assessee in this transaction can be brought to tax not the entire value of alleged bogus purchases are not disputing the declared sales. Therefore, in the given case, the Ld. CIT(A) after analyzing the nature of business of the assessee and the transactions, he has confirmed addition of 3% of the alleged non-genuine transactions. Appeal filed by the Revenue is dismissed.
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