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2021 (9) TMI 1120 - AT - Income TaxOver invoicing of purchases and bogus expenses - AO made the addition on the basis of statement of the director of the company wherein he stated that he has forgotten as to why the invoice for vessel MV STX Clover for 77556 MT was raised to US $ 57 from US $ 31 FOB + fright charges at actual PMT in terms of agreement for sale and purchase dated 10.12.2012 - CIT- A deleted the addition - HELD THAT:- CIT(A) while allowing the appeal of the assessee noted that the assessee had entered into contract with PT Almoudi Natural Resources Tradmin for supply of Indonesian coal having specification of GCV 5100-5200 Kcal/Kg vide agreement dated 10.12.2012 and subsequently the specification of the coal was changed to CGCV 5600 Kcal/Kg, which is of higher quality and due to the user requirement, by an addendum dated 18.12.2012. Accordingly, rate in the invoice was changed due to change in quality of coal. We also find that similar addendum was made for other purchases from PT Almoudi Natural Resources Tradmin which have not been doubted by the AO. Ld. CIT(A) has recorded his finding to this effect in the appellate order. Besides the Ld. CIT(A) also recorded a finding of fact that the revised rate of invoice was comparable with the international rate published by Argus - we do not find any infirmity in the order of Ld. CIT(A) and accordingly same is upheld by dismissing the ground of the Revenue’s appeal.
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