Assessing Officer held\u00a0 that assessee showed 13 sundry creditors in respect of supply of milk to assessee-company. However, above creditors made sales of milk to assessee-company but barring few creditors, no payment was made to any of creditors by assessee-company throughout year. In order to verify genuineness of transactions letters were issued by Assessing Officer to above creditors at addresses as furnished by assessee.\u00a0 However, letters issued were received back with postal remarks that addresses were incomplete. Since assessee eventually failed to produce any of milk vendors,\u00a0 20 per cent of expenditure incurred for purchase of milk from above named milk vendors is\u00a0 disallowed and added back by Assessing Officer to income of assessee. CIT(A) affirmed the disallowance. On appeal the Tribunal held that\u00a0\u00a0 since assessee had maintained a composite trading and profit and loss account for current year and all expenses of nature had been debited and had not been doubted, there was no justification to doubt purchases by accepting sales and income. (AY. 2010-11)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 69C : Unexplained expenditure-Composite trading and profit and loss account-Sales accepted-Failure to response to notices issued by Revenue-s Ad-hoc disallowance of purchase of Milk is deleted. <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-50588","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-d9W","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/50588","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=50588"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/50588\/revisions"}],"predecessor-version":[{"id":50589,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/50588\/revisions\/50589"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=50588"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=50588"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=50588"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}