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| The Tax Publishers2019 TaxPub(DT) 6634 (Mum-Trib) INCOME TAX ACT, 1961
Section 69C
In instant case, addition made by AO on account of bogus purchases was restricted to the extent of 2% keeping in view the decision of Tribunal in assessee's own case for earlier assessment year on similar facts and circumstances and also keeping in view the fact that assessee maintained quantitative details of goods purchased and sold and also furnished quantitative reconciliation of goods so purchased and sold.
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Income from undisclosed sources - Addition under section 69C - Assessee received accommodation entries from various concerns - Treatment as bogus purchases
During course of search proceedings, AO found that assessee had taken accommodation entries from various concerns. Thus, the purchases made from the said concerns were added by AO considering them as bogus on the ground that the assessee failed to substantiate his claim and prove the genuineness of the said purchases. Held: It was found that in assessee's own case for earlier assessment year on similar facts and circumstances, the addition made on account of bogus purchases was upheld by Tribunal to the extent of 2%. Thus, keeping in view the said decision of Tribunal also keeping in view the fact that assessee maintained quantitative details of goods purchased and sold and also furnished quantitative reconciliation of goods so purchased and sold, the correctness of which was not doubted by Revenue, the AO was directed to restrict the impugned addition to the extent of 2% of bogus purchases.
REFERRED :
FAVOUR : Partly in favour of assessee.
A.Y. :
IN THE ITAT, MUMBAI BENCH
R.C. SHARMA, A.M. AND PAWAN SINGH, J.M.
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