Case Law Details
Purchase cannot be treated Bogus based merely on the basis of statements given before Sales tax department
The next issue relates to disallowance made out of purchases and assessed u/s 69C of the Act. We heard the parties and perused the The total purchase expenditure claimed by the assessee during the year under consideration was Rs.7,36,27,555/-. The AO noticed that the Sales Tax Department of Government of Maharashtra has listed out names of certain dealers, who were alleged to have been providing accommodation entries without doing actual business. The AO noticed that the assessee made purchases to the tune of Rs.38.69 lakhs from two parties named M/s Umiya Sales Agency Pvt Ltd and M/s Mercury Enterprises, whose names found place in the list provided by the Sales Tax Department. The AO placed full reliance on the enquiries conducted by Sales Tax Department in respect of the parties, referred above. Accordingly, the AO took the view that the purchases to the tune of Rs.38.69 lakhs have to be treated as unexplained expenditure. Accordingly, he assessed the same u/s 69C of the Act.
The ld. CIT(A) deleted the addition and hence the Revenue is in appeal before the Tribunal.
The ld. DR strongly placed reliance on the order of Assessing Officer.
On the other hand, the ld. AR submitted that the additions made in the case of some other assesses on identical reasons have been deleted by the Co-ordinate Benches of the Tribunal in the following cases :
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It is nothing, just dramebazi. In income tax department if you money then no issue. Assessing Officer ITO have solution for every problem. At last they have Ram Band formula of your problem as delay your case on some weight. I am facing a case at ITO Ward 49(1) TDS laxmi Nagar delhi , Ward 54(1) and Ward 32(1) Since last 4 years. file is moving here to there. nothing happened against Accord Financial Services. due to Income tax authority not taking any decision since last 4 years.not giving any reply of my RTI. Just pending ….