Law:

Section:

Section 143 of Income-tax Act, 1961 - Assessment - Additions to income Where MD of one GP Ltd. denied having supplied any goods to assessee and based on this, Assessing Officer came to conclusion that items on which 100 per cent depreciation had been claimed by assessee were not supplied by GP Ltd. as no opportunity was given to assessee by Assessing Officer to examine MD and Tribunal had found his statements to be inherently contradictory, Assessing Officer was not justified in making additions on basis of statement of MD [In favour of assessee] [Assessment year 1997-98] CIT v. Jindal Vegetables Products Ltd. [2009] 315 ITR 265 (Delhi) The Assessing Officer, in the course of the assessment proceedings, raised queries in respect of eight items of machinery purchased from one GP Ltd. The MD of GP Ltd. denied having supplied any goods to the assessee. Based on this, the Assessing Officer came to the conclusion that the aforesaid items on which 100 per cent depreciation had been claimed by the assessee were not supplied by G Ltd. The Assessing Officer also rejected the evidence produced by the assessee and accordingly made an addition towards unexplained expenditure in respect of the two machines stated to have been supplied by G Ltd. The Tribunal deleted the addition holding that (i) no reliance could be placed on the statements made by MD of GP Ltd. as the statements were inherently contradictory and unreliable: (ii) no opportunity was given to the assessee by the Assessing Officer to examine the MD. It observed that the machinery stated to have been supplied were actually supplied to the assessee which had been duly recorded in the books of account of the assessee. As regards 8 items of machinery on which 100% depreciation had been claimed, the Tribunal held that the Assessing Officer, by solely relying upon the information received from the bankers of the suppliers that the amount paid by the assessee company had been withdrawn in cash, questioned the genuineness of the purchase of eight items of machinery without appreciating that the supplier had neither denied receipt of payments from the assessee-company nor stated that the said money was returned to the…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492