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2006 (1) TMI 84 - HC - Income TaxIncome from Undisclosed Sources - Whether, the Appellate Tribunal is right in law in deleting, the addition on account of fictitious purchases of colour and chemicals - Revenue has not disputed the details of the closing stock. Therefore, the Tribunal has found, that existence of the raw materials purchased cannot be doubted, and if that is the situation, there could be no case for disputing the purchases. The Tribunal has further recorded that there was no material on record to conclude that in addition to the alleged fictitious purchases there were also some other purchases for the same material under different invoices which could be reflected in the closing stock. Tribunal has by way of illustration analysed the account of one of the items, appearing as annexure 6 in the paper book filed before the Tribunal and come to the irresistible conclusion that the quantity remaining in the closing stock is only out of the purchases effected by the assessee. It is in the light of the aforesaid findings that the Tribunal has held that no addition was warranted on account of alleged fictitious purchases
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