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| The Tax Publishers2021 TaxPub(DT) 3561 (Del-Trib) INCOME TAX ACT, 1961
Section 153A Section 69C
As sale of assessee were not disturbed by AO therefore, entire purchase could not be treated as bogus and as assessee has already declared profit on account of sales against such bogus purchases which was more than GP rate declared by the assessee at 1%, therefore, on this count also no addition is called for.
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Income from undisclosed sources - Addition under section 69C - Bogus purchases - Assessee already declared profit on account of sales against bogus purchase which was more than GP rate declared by assessee
AO pursuant to search conducted at assessee's premises, framed assessment under section 153A and made addition under section 69C treating entire purchases as bogus. Held: As sale of assessee were not disturbed by AO therefore, entire purchase could not be treated as bogus and as assessee has already declared profit on account of sales against such bogus purchases which was more than GP rate declared by the assessee at 1%, therefore, on this count also no addition is called for, especially in absence of any incriminating material found during the course of search for concerned assessment year.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2007-08
INCOME TAX ACT, 1961
Section 153A Section 69C
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