Case Law Details
Pr. CIT Vs M/s. Paramshakti Distributors Pvt. Ltd. (Bombay High Court)
Whether on the facts and in the circumstances of the case and in law, the Hon’ble ITAT was justified in reducing the addition from Rs.23.16 Lakhs to Rs.2,21,600/- under Section 68 of the Income Tax Act in respect of the purchases made from M/s. Chevron Metal Products Pvt. Ltd., in spite of the fact that the Director of the said Company had admitted that the transactions were merely accommodation entries ?
Hon;ble High Court held that Tribunal applied the principle of taxing the profit embedded in such purchases covered by the bogus bills, instead of disallowing the entire expenditure.
FULL TEXT OF THE HIGH COURT ORDER / JUDGMENT
1. The Revenue has filed this Appeal to challenge the Judgment of the Income Tax Appellate Tribunal (“the Tribunal” for short). The following questions are presented for our consideration:
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