Findings on Bogus Purchases not rebutted by Material Records are not sustainable: ITAT upholds Addition made u/s 69 [Read Order]

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that findings on bogus purchases not rebutted by material records are not sustainable and upholds the addition made u/s 69 of the Income Tax Act

The appellant filed its return of income on 29.9.2011 declaring a total income of Rs. 3,18,600/-in which the assessment was framed u/s 143(3) read with section 147 of the Act. The Assessing Officer made an addition of Rs. 3,32,850/- u/s 69C of the Act and Rs. 16,643/- being the brokerage/commission paid to the broker. The appellant contended that the lower authority has erred by confirming the addition of Rs. 3,32,850/- u/s 69C of the Income Tax Act, 1961 made by the assessing officer in his order passed u/s 147/143(3) of the I.T. Act, 1961.

CIT(Appeals) dismissed the appeal filed by the appellant. The respondent revenue contended that the decision of the authorities was well reasoned and stated that the appellant failed to prove the genuineness of the transaction.  It was observed that the Assessing Officer stated that the appellant assess had used a pre-arranged device in form of booking bogus purchases of shares which the assessee failed to rebut by placing any material on record and the addition of Rs. 3,32,850/- made u/s 69C held as sustained.

Judicial Member, Shri Kul Bharat upheld the addition of Rs. 16,643/- u/s 68 of the Act on the ground that the assessee failed to rebut with any contrary material on record and the appeal filed by the assesses got dismissed.

To Read the full text of the Order CLICK HERE

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