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2019 (9) TMI 916 - AT - Income TaxBogus purchase of timber - As argued that the sellers did not issue any sale bill - HELD THAT:- In our opinion, it is the duty of the assessee to produce all the bills and vouchers in support of purchase entries found in the books of account. In the absence of the details, the Assessing Officer considered it as bogus purchase. Even before us, the assessee was not able to lead any evidence regarding the genuineness of the purchasers, though the burden is on the assessee to prove the genuineness of the transactions. In view of these, we are inclined to confirm the addition made towards bogus purchases. Accordingly, this ground raised by the assessee is dismissed. Addition u/s 40A(3) - cash purchase in excess of ₹ 20,000/- - HELD THAT:- Before us, the assessee filed receipts from parties confirming the receipt of cash payments and also confirming that they do not have bank accounts. DR objected to this contention of the assessee and contended that the receipts filed by the assessee are stereotype and also they do not have dates. DR further submitted that these receipts were not produced before the AO for verification. In our opinion, these receipts need to be verified at the ends of the AO. Hence, in the interest of justice and equity, we remit this issue to the A.O. to examine it afresh and if the assessee is able to prove the reasonable cause for making such cash payments, the same may be deleted. Further the amount paid towards bogus purchases by way of cash cannot be once again considered u/s 40A(3) of the I.T.Act, which amounts to double addition. To that extent the assessee gets relief. With these observations, the issue is remitted to the A.O. for fresh consideration. Stock difference - difference between value of the stock hypothecated to the bank to avail loan and the value of the stock found reflected in the trading account - HELD THAT:- In the present case, the stock is hypothecated to the bank and the bank official physically verified the stock on 20.03.2013 and thus there was a difference between the stock value shown in the stock statement furnished to the bank and the value of stock shown by the assessee in his books of account as on 31.03.2013 at ₹ 94,77,500. Even after giving opportunity to the assessee, the assessee was not able to reconcile the stock difference. In our opinion, when there is a difference in the value of stock shown in the statement given to the bank and the books of account of the assessee, the assessee is bound to explain the differences. In the absence of any explanation furnished by the assessee, the CIT(A) is justified in confirming the addition made by the Assessing Officer. Case followed COIMBATORE SPINNING AND WEAVING CO. LIMITED VERSUS COMMISSIONER OF INCOME-TAX. [1973 (3) TMI 27 - MADRAS HIGH COURT] - Decided against assessee.
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