The Assessing Officer compared the assessee’s purchases recorded for eleven months with the suppliers’ accounts for twelve months and treated the difference as unaccounted purchases. The Tribunal held that the comparison was fundamentally erroneous and incapable of establishing suppression of purchases. As the addition was based on an incorrect methodology, it was rightly deleted. (AY. 2010-11 to 2012-13).
Dy. CIT v. WD and Sons P. Ltd. (2025) 129 ITR 278 (Chennai) (Trib.)
S. 143(3) : Assessment-Income-Alleged suppression of purchases-Comparison of eleven months’ purchases with twelve months’ purchases-Wrong methodology-Addition deleted.[S.5]
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