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2017 (2) TMI 918 - AT - Income TaxG.P. addition - Addition on account of alleged peak of unaccounted investment made in purchases - Held that:- In the absence of any documentary evidence, the impugned additions cannot be made solely based on the action of the third person that is the DRI on the allegation that the assessee has under-valued its import of PFY and has made payments by under invoicing. The impugned additions do not hold any water. We, accordingly, set aside the findings of the ld. CIT(A) and direct the A.O. to delete the addition on account of G.P. addition and on account of alleged peak of unaccounted investment made in purchases. - Decided in favour of assessee. Addition of bogus purchases - Held that:- There is no dispute that the purchases made from M/s. Raj Impex were duly supported by bills and all the payments have been made by account payee cheques. There is also no dispute that M/s. Raj Impex have confirmed all the transactions. There is no evidence to draw the conclusion that the entire purchase consideration which the assessee had paid to M/s. Raj Impex had come back to the assessee in cash.It is also true that no adverse inference has been drawn so far as the sales made by the assessee is concerned. We also find that the entire purchases made by the assessee from M/s. Raj Impex have been accounted by Raj Impex and have paid the taxes accordingly - Decided in favour of assessee. Addition on account of estimation of oil gain - Held that:- It is true that the A.O. has made the additions taking a leaf out of the findings given in A.Y. 2004-05. Except for this, there is nothing on record which could suggest that the assessee has made oil gain during the year under consideration. In the absence of any corroborative evidence, we decline to interfere with the findings of the ld. CIT(A).- Decided in favour of assessee.
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