Purchases added u/s 69 by ito

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 February 2013 Assessing officer rejected purchases and added to my income u/s 69 on the ground that no payment was made to him during the year and I was unable to produce the seller for statement on oath.However I had submitted confirmation letter of the seller.My question is whether purchases can be rejected without rejecting books of accounts? Is there any case law?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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21 February 2013 If the right index finger is rotten, then the finger only is removed and not the entire right hand is amputated.So, It is not necessary to reject the books.

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Have you shown, when the payment was made?
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This may have happened due to the fact that you have failed in showing the details of the payment to the vendor against the so called purchases.
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If confirmation letter is having details as regards receipt of a payment even after 2 years, then also the AO could not reject the purchases.
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Querist : Anonymous

Querist : Anonymous (Querist)

07 March 2013 May you please give me some case law

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