2013 (8) TMI 80

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.... following substantial questions of law: "1. Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal is right in law in deleting addition sustained by the Appellate Commissioner on account of unverifiable purchases to the extent of 6,35,143/- [5%] of the total amount of Rs. 1,27,02,869/- made by the assessing officer? 2. Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal is right in law in deleting disallowance sustained by the Appellate Commissioner on account of brokerage commission to Rs. 36,18,904/- out of Rs. 72,37,808/- made by the Assessing Officer?" 2. We have heard learned counsel Mr. Mehta for the revenue and learned senior counsel, Mr. Sopar....

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....e. Assessing Officer has made addition in respect to the outstanding amount as on 31.3.2001 which has been cleared in the succeeding years. The ratio of the creditor to the purchases is normal considering the past records of the assessee. The creditors were outstanding owing to liquidity as assessee is also required to get credit in respect of sales also. Even otherwise provision of section 68 is not attracted to amounts representing purchases made on credit as held in the case of Panchan Dass Jain cited supra. The addition for bogus purchases cannot also be sustained in full or in part in view of the various cases laws cited by the assessee and in view of the facts that the decision of Vijay Proteins Ltd. and Sanjay Oil Cake Industries are....