Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (3) TMI 768 - AT - Income TaxAddition considering the purchase cost paid over the spot rate in respect of deliveries of Palmolein Oil taken after the expiry of the delivery period of the contract - addition holding the transaction as non-genuine - whether payment on the basis of the purchase rate specified under the contract which is higher than rate prevailing on the date of delivery is genuine or not? - HELD THAT:- We find that in the subsequent year that is A.Y. 2011-12 no addition has been made on this count. Furthermore, in the A.Y. 2012-13 the assessment was finalized under Section 143(3) holding the business transaction of Palmolein Oil are genuine one and no addition has been made on account of trading transaction of Palmolein Oil. It is relevant to mention that in the A.Y. 2013-14 though in assessee's case the addition was made on the same issue of an amount of ₹ 39,89,762/- taking the base of A.Y. 2010-11 which under consideration before us the Ld. CIT(A) in that A.Y. 2013-14 by and under the order dated 25.01.2017 has accepted the said Palmolein Oil business as a genuine one and only confirmed an addition of ₹ 2,00,000/- on ad-hoc basis. We do not justify the observation made by the Ld. AO in holding the transaction ingenuine and further holding that the loss incurred by the appellant is not a genuine loss and thereby making addition considering the purchase cost paid over spot rate in respect of deliveries of Palmolein Oil. Therefore, the addition in our considered opinion is not in terms of the prescribe method of accounting as discussed hereinabove and hence, the same is hereby deleted. - Decided in favour of assessee.
|