9911796707
|
Home
Issues involved: Appeal against order of CIT(A)-V, Baroda dated 29-10-2012 u/s 250 read with section 143(3) of the Income Tax Act, 1961 for assessment year 2007-08 regarding addition of Rs. 7,17,500/- u/s. 69C towards alleged bogus purchases.
Facts: The assessee, engaged in steel trading, filed return for AY 2007-08 declaring income of Rs. 2,25,352. AO disallowed Rs. 12,73,423 towards bogus purchases from M/s. Bhagyoday Enterprise due to lack of evidence and supplier denial. AO's Findings: Assessee failed to provide stock details, delivery evidence, and supplier verification. Suppliers denied sales to assessee. AO added disallowed amount to income. CIT(A) Decision: CIT(A) confirmed addition of Rs. 7,14,500 as unexplained assets and expenditure u/s 69C, and restricted balance addition to 25% of Rs. 5,58,923 as notional profits of bogus purchases. Appellant's Argument: Assessee appealed CIT(A)'s decision based on ITAT Ahmedabad Bench rulings, seeking deletion of confirmed addition. Tribunal Decision: Tribunal found merit in appellant's submissions. Citing precedent cases, it held that when stock records tally, purchases cannot be rejected entirely. Tribunal restricted disallowance to 25% of bogus purchases, sustaining Rs. 3,18,355 addition and deleting the rest. Conclusion: Tribunal allowed the appeal, modifying the addition to Rs. 3,18,355 and deleting the balance. The decision was based on reconciled stock records and legal precedents cited by the appellant. Judges: SHRI A. MOHAN ALANKAMONY, AM AND SHRI KUL BHARAT, JM
|
