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2023 (11) TMI 943 - PUNJAB & HARYANA HIGH COURTDisallowances of unsecured loans obtained from 8 parties and certain unverifiable purchases - rationale on the part of the AO in accepting the purchase and sale but rejecting the outstandings of such purchase - ITAT deleted addition - HELD THAT:- AO had taken the shorter route of considering the purchase creditors to be bogus merely on the basis of their non-response verification letters issued under the provisions of Section 133(6). Resultantly, he set aside the action of the AO since there was already specific material adduced by the company and came to the conclusion that there is no rationale in accepting the purchases and the sale, but rejecting the outstandings of such purchases. In such circumstances, the addition was directed to be deleted. A perusal of the order of the assessment would also go on to show that in his comments, at one place, AO has mentioned that the ITR is not legible and the bank statement is difficult to read and resultantly came to the conclusion that the creditworthiness and genuineness of transaction is not proved. Similar observations have also been made for rejecting the entries without any reasons given. The Appellate Authority thereafter has, thus, applied its mind to the material which was on record and had allowed the appeal. The said appeal was never contested on merits before the Tribunal but only on the technicality that there was additional evidence produced, which does not come forth from the above facts and circumstances and neither any material has been produced. Revenue appeal dismissed.
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