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2022 (9) TMI 236 - AT - Income TaxBogus purchases - assessee has shown purchases from ‘A’ but actually procured the material from ‘B’. In this exercise, the assessee might have saved Excise Duty etc. - HELD THAT:- As observed that if an assessee is maintaining complete details of the traded items, then total amount of purchases should not be disallowed. It can be explained by way of example, namely an assessee is trading iron rods, gudder patty, etc. It has been maintaining the complete details of purchases and sales on some investigation, it can be revealed that the assessee has shown purchases from ‘A’ but actually procured the material from ‘B’. In this exercise, the assessee might have saved Excise Duty etc. Sale figure could not be achieved, if the material was not sourced from any other concern, but no such details are available before us. The assessee has neither produced these details before the AO that in the accounts it might have debited the purchases qua M/s. Vijaypath Vincom Pvt. Limited but actually procured the material from ‘X’, ‘Y’, ‘Z’ concern. If that factor has been proved demonstrating the complete details of purchases as well as sales, then 100% of the purchases by terming it as bogus could not be added. In the absence of these details, we do not have any option except to confirm the orders of the revenue authorities. Accordingly, we dismiss the appeal of the assessee.
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