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2005 (11) TMI 172 - AT - Income TaxIncome From Undisclosed Sources - HELD THAT:- The admitted facts of the case are that purchases were recorded in the regular books of account maintained. The purchases are supported by proper bills/vouchers. The assessee filed the necessary details regarding name, address, sales-tax number. The payments were made through banking channels. Thus, the sale against the purchases are not doubted. It is not the case of AO that amounts paid for purchases had come back to the assessee. We noticed that the AO had made addition merely on the ground that the suppliers are not located and they were not produced for examination. After considering the facts of the case we are of the view that when purchases are supported with authenticated purchase bills, having sales-tax numbers and payment through cheques, the addition cannot be made u/s 69 or 69A as in this section. Thus, we are of the considered view that the addition is not warranted. We accordingly delete the addition. In the result, the appeal is partly allowed.
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