2019 (2) TMI 1949

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.... (AO) u/s.40A(2)(a) of the Income-tax Act, 1961 (hereinafter also called as 'the Act'). 3. Briefly stated, the facts of the case are that the assessee is a trader in Gold, Silver, Diamond and Precious Stones. It made certain purchases from its sister concerns. The AO, applying the provisions of section 40A(2)(a), of the Act made an addition of Rs. 1,20,96,250/- in respect of purchase of Gold, Bullion and Rs. 10,00,38,042/- towards purchase of new ornaments. This resulted into a total disallowance of Rs. 11.21 crore u/s.40A(2) of the Act. The assessee challenged the action of the AO contending before the ld. first appellate authority that the AO applied the rates at the close of the day for working out the excessive payments and convenientl....

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.... as well as the ld. CIT(A) have followed their respective actions for the A.Yrs. 2009-10 and 2010-11. These assessment years came up for consideration before the Tribunal in appeals filed both by the assessee as well as the Revenue, in the same way as has been done for the instant year. Vide order dated 16-01-2015, a copy placed at pages 193 onwards of the paper book, the Tribunal in ITA Nos. 532 and 663/PUN/2013 etc. has upheld the deletion of addition u/s.40A(2) of the Act For the A.Y. 2010-11, i.e. immediately preceding assessment year, the Tribunal has sustained the addition by directing to enhance the GP rate by 0.09%. Since the facts and circumstances of the instant ground are mutatis mutandis similar to those of the immediately prece....