Case Law Details
Yagnesh Dayabhai Vyas Vs ITO (ITAT Ahmedabad)
Ld. A.R. cited a judgment of ITAT Delhi Bench in the matter of Smt. Sudha Loyalka vs. ITO where A.O. made addition to assessee’s income under section 69C in respect of amount payable to creditors towards purchases, in view of fact that said purchases were duly recorded in books of account and sales made against those purchases were not disputed, impugned addition was to be set aside. ITAT held no addition could be made under section 41(1) in respect of unexplained purchases where amount was shown as payable in balance sheet and thus there was no cessation of liability.
Respectfully following the Jurisdictional High Court order and parity with the Delhi ITAT order and sales were not disputed by the lower authorities, so in view of the above, we allow this ground of appeal.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
1. This appeal has been filed by the Assessee is directed against the order of the Commissioner of Income Tax (‘hereinafter called CIT(A)’) order no. CIT(A)- 4/10308/2016-17 order dated 20/12/2018 arising out of assessment order dated 30.03.2016. Assessee has taken following grounds of appeal:
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