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2023 (9) TMI 470 - ITAT JAIPURReliability of statement of third party - Estimation of income - Bogus purchases - AO rejected the books of the assessee and estimated 25 % of the purchase claimed as income of the assessee - HELD THAT:- On going through the overall facts, instruction of CBDT and the fact that the quantity of purchase and sales is not doubted, the books were not found defective and the order is passed u/s. 143(3) of the Act we are of the considered view that the assessee has duly discharged its burden of proving the genuineness of book results. The assessing officer has not done any independent and proper investigation. He simply relied upon he statement of third party who also stated that he is involve in the diamond business though the modus operadi is different. Thus, merely the third person stated that he is involved in issuing accommodation bill, the book results declared by the assessee which is higher then the industry norms prescribed by the board the action of the assessing officer in estimating the profit over and above the books results confirmed by the ld. CIT(A) is not in accordance with the law. Appeal of assessee allowed.
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