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2019 (1) TMI 990 - AT - Income TaxUnexplained machinery expenditure u/s 69C - failure of the assessee to produce the said party issuing bills - Held that:- Held that:- Revenue is not justified in treating the bills issued by the fifth party as bogus merely because of the failure of the assessee to produce the said party before him for verification, especially when the overwhelming evidence was produced by the assessee in the form of relevant bills, payments by cheque, tax deduction at source, etc. to support and substantiate his claim for the corresponding machinery expenses. As a matter of fact, the assessee even filed the copies of PAN Cards of these parties to establish their identity before the CIT(Appeals) and although the CIT(Appeals) accepted the factum of machinery expenses incurred by the assessee on the basis of the supporting evidence, he treated the bills issued by the concerned three parties as bogus on the basis of unfounded doubts expressed by the AO and sustained the addition to the extent of profit on estimated basis. Having regard to all the facts of the case as well as the evidence placed on record by the assessee, we are of the view that the ld. CIT(Appeals) ought to have deleted the addition made by the Assessing Officer on account of the alleged bogus machinery expenses when the claim of the assessee for such expenses was duly supported by the relevant and cogent evidence - Decided in favour of assessee.
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