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Income Tax Appellate Tribunal, “SMC” Bench, Mumbai
Before: Shri Shamim Yahya (AM) & Shri Pawan Singh (JM)
Per Shamim Yahya (AM) :- This is an appeal by the Revenue wherein the Revenue is aggrieved that learned CIT(A) has deleted the addition of Rs. 90,000/- being disallowance on account of bogus purchases vide order dated 30.7.2018 pertaining to A.Y. 2009-10.
In this case the assessment was reopened upon information from sales tax department that assessee has made purchases from bogus dealers. The Assessing Officer in this case has made 100% addition on account of bogus purchases amounting to Rs. 90,000/-.
Upon assessee’s appeal learned CIT(A) has noted that the said purchase was purchase of machinery and no depreciation on it was even claimed. Hence, she deleted the addition.
Against the above order the Revenue is in appeal before the ITAT. We have heard both the counsel and perused the records. We find that when the 2 Shri Anand Prabhakar Khanolkar purchase has been debited to plant and machinery and no depreciation is claimed, learned CIT(A) is correct in deleting the addition. Hence, we uphold the same.
In the result, this appeal filed by the Revenue stands dismissed. Order has been pronounced in the Court on 7.1.2020.