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2018 (6) TMI 740 - AT - Income TaxAdditions made on account of bogus purchase - it was confirmed by the seller party no transaction were made during the relevant financial year - Held that:- question of rejecting the purchases simply because he did not receive any information, when notices were issued under section 133(6) of the Act, from parties, cannot be the sole reason to make the addition. It is to be kept in mind that the amount of sales by itself cannot represent the income of the assessee. With regard to the purchase made from the two parties i.e. M/s IRIS Computers Ltd & M/s lndia Cyber Learning (P) Ltd. It was submitted before us that the invoices were raised to Government of Bihar on the last day of FY 2009-10 - but in the subsequent year neither purchase has been booked nor sale has been booked - ledgers of sundry creditors along with purchase details for F.Y 2009-10 is filed and placed on record and from the documentary evidence, we note that from the list of sundry creditors as on 31.03.2011 i.e. the subsequent year, the above two companies do not figure in the list. Same is the case with the list of Sundry Debtor as on 31.01.2011 wherein the two companies do not figure - while looking from another angle, we do not find that there is any loss for the Revenue because in any case the purchases and sales in respect of computers have to be allowed in the subsequent Assessment Year and the rate of tax being the same, it will be tax neutral so there is no prejudice to revenue - hence the issue is hereby upheld and the ground raised by the Revenue is dismissed.
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