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The Tax PublishersITA No. 4566/Mum/2019
2021 TaxPub(DT) 1294 (Mum-Trib)INCOME TAX ACT, 1961
Section 69B
Following the decision in the case of CIT v. Smith P. Sheth [(2013) 356 ITR 451 (Guj) : 2013 TaxPub(DT) 2115 (Guj-HC)], the findings of CIT(A) restricting the disallowance @5% of bogus purchases were agreed to.
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Income from undisclosed sources - Addition under section 69B - Bogus purchases -
AO on the basis of information received from the DGIT(Inv) and Sales Tax Department made addition 100% addition on account of bogus purchases. CIT(A) however, restricted disallowance @5%. Held: No doubt, the purchases made from the suspected parties were not genuine. However, the purchases itself cannot be doubted as rightly adjudicated by CIT(A) that AO has not doubted sales declared by the assessee, only he suspects the purchases. Following the decision in the case of CIT v. Smith P. Sheth [(2013) 356 ITR 451 (Guj) : 2013 TaxPub(DT) 2115 (Guj-HC)], the findings of CIT(A) were agreed to.
Followed:CIT vrs. Smith P. Sheth [(2013) 356 ITR 451 (Guj) : 2013 TaxPub(DT) 2115 (Guj-HC)].
REFERRED :
FAVOUR : In favour of assessee
A.Y. : 2010-11
IN THE ITAT, MUMBAI BENCH
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