SCRUTINY U/S 143(3)

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 September 2010 One of my client submited purchase invoice,bank statement reflecting payment made for purchase ( Name of Creditors clearly shown in Bank Statement)in support of creditors geniuness.

The learned DCIT added back entire purchase of Rs.12 Lacs to the Income of assessee , because the creditor has not confirmed the transaction.

What the client should do, as he has submited the evedance of purchase and he has no other document in support of his claim.

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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23 September 2010 Client may submit more evidence like trnasport copy ( GC), MRN ( material recived note), Purchase order duly accepted by supplier . Any document which has been signed by creditors.

mohinder kansal

mohinder kansal (Expert)
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23 September 2010 As addition has been made by disallowing the purchases of Rs. 12 lacs. It is mentioned in querry that entire purchase of Rs. 12 lacs has been added to the income of the assessee, which the AO can not do as if there is sales then there must be purchase also. there are many cases supporting this contention. detail observation can only be made by going through all the facts and relevant assessment order.

First of all an appeal should be filed against the order of the AO, DCIT in this case.

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