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2023 (1) TMI 19 - ITAT DELHIAddition u/s 69C - Bogus purchases - assessee submitted as relying on assessee own case disallowance can be restricted to 5% in the present case also - HELD THAT:- AO has treated the purchases from certain parties as non-genuine and added back the entire amount to the income of the assessee. However, it appears on record that before the Assessing Officer the assessee has furnished the details of sales quantitative tally of purchase and sales etc. Therefore, the fact that the assessee had purchased the goods from some source is established. In such a situation, the entire purchase cannot be disallowed but the disallowance can be restricted to the profit element embedded in such purchases. In fact, adopting this approach in some other assessment years the AO in assessee’s own case has restricted the disallowance to 5% in respect of purchases made from very same parties. The same yard-stick can be applied in the impugned assessment year as well. Therefore, direct the AO to restrict the disallowance to 5% of the total purchases - These grounds are partly allowed.
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