Unproved Purchases: Income Tax Addition Explained

Quick Summary

This case involves an appeal by a diamond trading company regarding an income tax addition made for the assessment year 2007-08. The Assessing Officer reopened the assessment based on information about suspicious dealers. The company failed to provide sufficient evidence for purchases made from a specific dealer, only offering stock registers and cheque payment details. Consequently, the officer added 8% of the unproved purchase value to the assessee's income, estimating suppressed profit. The appeal against this addition was dismissed by the CIT(A), leading to the current appeal.

Court :
ITAT Mumbai

Brief :
This appeal by the assessee is directed against the order Commissioner of Income Tax(Appeals)-3, Mumbai [in short 'the CIT(A)�] dated 30/09/2019 for the assessment year 2007-08.

Citation :
ITA NO.7747/MUM/2019(A.Y 2007-08)

Daily Limit Reached