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2017 (6) TMI 919 - AT - Income TaxAdditions on account of creditors for purchase of goods - Held that:- As find from the findings of the assessing officer and the Ld. CIT(A) that the purchase parties were not found to be existed at the given addresses. In spite of giving opportunities, the assessee failed to prove the genuineness of the transactions as a result whole of the purchases were disallowed by the assessing officer. The ld. CIT(A) had restricted the disallowance to the extent of 25% of the total disallowance on the basis of the decision of ITAT Ahmedabad in the case of Vijay Proteins Co. vs. ACIT (1996 (1) TMI 144 - ITAT AHMEDABAD-C). We noticed that the disallowance of whole of the purchases by the assessing officer was excessive therefore 25% of the alleged disallowance confirmed by the Ld.CIT(A) appeared to be reasonable Addition u/s. 40A(3) - Held that:- As noticed that the assessing officer has obtained photocopies of cheques from the bank and detected nature of payment made through these cheques were above ₹ 20,000/- towards purchase made by the assessee in violation of provision of section 40A(3) of the act.. We have further noticed that the assessee failed to give any satisfactory explanation to justify the payments against purchases made in excess of ₹ 20,000/- each, other than account payee cheques or drafts and failed to furnish any supporting documentary evidences. In view of the above facts and circumstances we do not find any reason to interfere in the detailed finding of the Ld.CIT(A). Introduction of capital from unexplained sources - unaccounted income of the assessee - Held that:- As assessee has introduced fresh capital during the year and has not furnished convincing supporting evidences in respect of introduction of capital. We further find that the source of capital explained by assessee in the form of cash received from Dubai appeared to be inconclusive without involving any banking channel. After considering the detailed findings of the Ld.CIT(A), consequently we could not find any cogent supporting evidences to intrude in the decision of Ld.CIT(A).
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