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2016 (6) TMI 1078 - ITAT MUMBAIGP addition on the unrecorded purchases - Held that:- We find that the purchase details from its sister concerns M/s Maklai Timber Mart on 31-03-2007 amounting to ₹ 17,38,951/- while the bank loan vide OD of ₹ 18 lakhs was transferred to the sister concern on 28th September, 2006 which has been claimed as against the purchases made on the last day of March, 2007 and in support the assessee company has filed copies of delivery challans which are not signed by any person. The assessee company submitted that the difference of ₹ 12,62,184/- in the purchases shown as per the P&L account and the sundry creditors was due to the typing error which has occurred as the miscellaneous purchases should be ₹ 28,29,668/- instead of ₹ 38,05,716/-. The assessee company is trying to justify the above differences due to the typing error. We have also found that the learned CIT(A) has not given any notice to the assessee company before enhancing the assessment in the appellate proceedings before the learned CIT(A) , whereas directions were given by the learned CIT(A) to the A.O. to add some GP on the unrecorded purchases on the grounds that the assessee company might have earned profit by selling the purchases out of books. In our considered view, interest of justice will be best served if all the issue of additions made by the A.O. are to be set aside to the file of the AO for de novo determination of all the issues on merit after taking into account the relevant evidences and explanations submitted by the assessee company with respect to the purchases made by the assessee company keeping in view of the stock movement vis-à-vis sales made by the assessee company and then arrive at the actual differences which remained after quantitative reconciliation of the stock including examination and verification of genuineness of the purchases made from sister concern Maklai Timber Mart. - Decided in favour of assessee for statistical purposes.
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