banner_ad

Section 40(A)(3)

This query is : Resolved 
Profile Image

Profile Image

(Querist)
20 November 2008 Dear All

In an search case the some undisclosed purchases and sale was found and special audit was called for and in the audit report it is mentioned that there are Nil cases falling u/s 40(A)(3. But the learned ITO while drafting the order invock the provision of 40(A)(3)and disallowed 20% of purchases and made the addition and he had also made the addition by applying G.P Rate of Sales.
Is he Justified
Please reply with relevant Case Laws
Profile Image

Deepak Agrawal

Profile Image

Deepak Agrawal (Expert)
20 November 2008 NO
Profile Image

CA RAMESH KUMAR AHUJA

Profile Image

CA RAMESH KUMAR AHUJA (Expert)
21 November 2008 No, there can not be two additions for undisclosed purchases.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
01 June 2026
Audit, Taxation & Compliance Executive

R P S K & Associates

Nashik

CA Inter

View Details
Company
18 May 2026
MIS Executive

Primarc Pecan Retail Limited

Mumbai

B.Com

View Details
Company
23 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
11 May 2026
CA Dropout

Patron Accounting LLP

Pune

CA Inter

View Details
Company
21 May 2026
Associate

PWC

Kolkata

CA

View Details
Company
16 May 2026
Account & Audit Asst

RAHUL KHANDEBHARAD & ASSOCIATES

Nashik

B.Com

View Details
Company
26 May 2026
Senior Accountant cum purchase Manager

Vardhaman Group of India

Pimpri Chinchwad

CA Inter

View Details
Company
24 May 2026
Accounts & Tax Executive

PARAS KHURANA AND CO

New Delhi

B.Com

View Details