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2018 (4) TMI 513 - ITAT DELHIReopening of assessment - bonafide or definite 'reason to believe' that certain income has escaped assessment - non genuine purchases - Held that:- AO made the addition only on relying the statement of one Shri Rajendra S. Jain. The assessee to prove the genuineness of the transactions, furnished the copies of purchase bills, sales bills, stock register and bank statements. In the instant case, the AO also issued the notice u/s 133(6) of the Act, in response the proprietors of the aforesaid firms furnished the confirmations alongwith copies of their ITR, bank statements. The assessee furnished copies of returns of the said parties, their PAN numbers, relevant bank accounts, copy of invoices, sales tax registration number etc. This fact has been admitted by the A0 - assessee made the entry of the purchases in the stock register and also furnished the copies of sales bills to the AO. The amount was received against the sales through banking channels and the payments for the purchases were also made through banking channels - when the AO had accepted the sales of the same items purchased by the assessee than there was no occasion to doubt the purchases -AO only doubted 90% of the purchases and made the addition to that extent but if the purchases were not genuine, the addition ought to have been made of the whole amount and not only of 90% and when the sales of the same items were accepted as genuine than the addition could not have been made for the purchases - additions deleted - decided in favour of assessee.
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