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2021 (3) TMI 401 - ITAT MUMBAIEstimation of income - Bogus purchases - CIT-A restricted the additions @5% - HELD THAT:- It is evident that the assessee was in possession of purchase invoices and it placed on record confirmation of accounts. The payments to the suppliers were through banking channels. The assessee produced stock register extract and correlated the tainted purchases with sales transactions. There could be no sale without actual purchase of material keeping in view the assessee’s nature of business. The sales have not been disputed or disturbed by the revenue. In such a case, the approach of Ld. CIT(A) in estimating the additions @5% is quite fair & reasonable. We concur with the same and therefore, this ground raised by the revenue stand dismissed. Addition u/s 68 - HELD THAT:- During appellate proceedings, the assessee submitted documentary evidences to demonstrate the fulfilment of primary ingredients of Sec.68. The confirmations of the lender, bank statements, Income Tax Returns, PAN etc. were duly filed in support of the transactions. It is another fact that most of the loans has been taken either from directors or their relatives and therefore, the identity of the lender could not be doubted. The creditworthiness was established by adducing the bank statements as well as Income Tax particulars. The genuineness got established by confirmation of accounts. Since, the assessee discharged the primary onus, as casted upon him in terms of Sec. 68, of proving these transaction, the impugned loans could not be termed as assessee’s unaccounted money. Therefore, no fault could be found in the approach of Ld. CIT(A) in deleting the addition u/s 68 as well as interest disallowance. The ground thus raised before us stand dismissed. Addition u/s 36(1)(va) - HELD THAT:- Addition was deleted by Ld. CIT(A) by relying upon the binding judicial precedent in the shape of decision in CIT V/s Hindustan Organic Chemicals Ltd. [2014 (7) TMI 477 - BOMBAY HIGH COURT] Since no contrary decision is on record, our interference is uncalled for. Ground stand dismissed.
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