Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (1) TMI 967 - AT - Income TaxBogus purchase of jewellery - Valuation of stock - statement recorded on oath u/s. 132(4) - HELD THAT:- We are of the considered view that where the assessee has discharged the initial onus cast upon it and has submitted the necessary documentation in support of the purchases so made and such purchases are duly recorded in the books of accounts and forming part of the inventory and such books of accounts and closing inventory being duly accepted and no adverse finding recorded by the AO, mere reliance on statement of Mr. Rajender Jain without allowing an opportunity of cross - examination to the assessee, the purchases so made cannot be held as bogus. We are intrigued by the fact that where the said purchases are equally forming part of inventory and closing stock as not disputed by the AO and in absence of any finding that the purchases are made at an inflated value vis-à-vis comparable third party and/or the closing inventory has been shown at a lower value, how the same will lead to understatement of profit as so held by the AO which is not clear from the reassessment order. Addition so made by the AO and upheld by the ld. CIT(A) is hereby directed to be deleted. Ground of appeal no. 4 of assessee's appeal is thus allowed
|