| The Tax Publishers2020 TaxPub(DT) 1773 (Del-Trib) INCOME TAX ACT, 1961
Section 69C
In the absence of dispute as regards sales and gross profit declared by assessee, no disallowance of purchase could be made, especially when assessee had filed confirmation from parties and audited books of account and AO had not rejected the books of account as required under section 145.
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Income from undisclosed sources - Addition under section 69C - Alleged unexplained purchases - Assessee filed confirmation and audited books--AO neither rejected books of account nor doubted corresponding sales
AO made addition on account of unexplained purchases, however, without doubting sales and gross profit declared by assessee. Held: In the absence of dispute as regards sales and gross profit declared by assessee, no disallowance of purchase could be made, especially when assessee had filed confirmation from parties and audited books of account and AO had not rejected the books of account as required under section 145.
Followed:Smt. Sudha Loyalka v. ITO, Ward 35(2), New Delhi (2018) 97 Taxmann.com 303 (Del-Trib.), Gems v. ITO, Ward-33 (2), New Delhi, 2017 (12) TMI 1254--ITAT DELHI : 2018 TaxPub(DT) 73 (Del-Trib), Manoj Sharma v. ITO, Ward-39(5), New Delhi (2019) 103 Taxmann.com 105 (Del-Trib.) and CIT v. Nikunj Eximp Enterprises (P) Ltd. ITA 5604/2010, dated 17-12-2012.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
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