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2023 (8) TMI 501 - ITAT DELHIAddition u/s 68 - cash sales made to two parties - as argued assessee was not given effective opportunity to explain and provide the necessary confirmation from the parties - HELD THAT:- AO has noted the cash deposited by the assessee. However, the AO has not given any finding regarding the purchases in the assessment order the AO noted that on inquiry it was found that these firms are closed. The explanation of the assessee is that it had made cash sales to these two parties. AO should have given finding in respect of purchases made by the assessee for the items which were claimed to have been sold to these entities. Further, it is contention of the assessee that those parties might have claimed set off of the TCS in their respective returns of income. Hence, the impugned order is set aside. The assessment is restored to the file of AO to verify the correctness of the claim of the assessee that it had made sales in cash to these parties and what is the status of their assessment by the AO. Ground raised is this appeal is allowed for statistical purposes.
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