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2022 (3) TMI 652 - ITAT PUNEBogus purchases u/s 69C - No evidences showing physical movement of goods - HELD THAT:- Assessee produced bills raised by all the six parties and in some cases credit notes given by the said parties before the AO. AO added entire purchases only on the ground that the assessee could not produce any evidences showing physical movement of goods. AO made addition only on the pretext that there was no evidence showing the physical movement of goods purchases, in our opinion, is not correct to treat the entire purchases as bogus and gross profit should be determined at 10%. Therefore, by following the finding of Co-ordinate Bench in the case of Dilawar R. Shaikh [2017 (8) TMI 1658 - ITAT PUNE] we direct the AO to determine gross profit at 10% on such alleged purchases. Thus, the ground Nos. 1 to 3 raised by the assessee are allowed. Disallowance made u/s. 14A - HELD THAT:- We deem it proper to remand the issue to the file of AO for computing the disallowance of expenditure relating to the investments yielded exempt income. The assessee is liberty to file evidences, if any, in support of his claim. Thus, ground Nos. 4 and 5 raised by the assessee are allowed for statistical purpose.
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