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The Tax Publishers Asstt. CIT v. Jaybharat Textiles & Real Estate Ltd. [ITA No. 5163/Mum/2013, dt. 24-2-2016] : 2016 TaxPub(DT) 2241 (Mum-Trib) Addition on alleged bogus sale under section 68 adjusted by share allotments *Facts:* Assessee during the scrutiny assessment was found to have received share capital of 100 crores from 5 parties. It was found on facts that the assessee had sold cotton to one Elpro properties for INR 10,13,00,265 until 31-3-2010, assessee paid 13,00,265 and balance 10 crore was converted into equity share capital. Similar entry was found with one Cyra capital Pvt. Ltd. for 30 crores. It was also found that the said parties though have sold have not paid the assessee the dues. Alleging these as bogus purchases assessing officer made additions under section 68. On appeal the assessees GP rate was found alright, but survey of the parties who were applicants were also traceable, PAN existed, returns were being filed found to be genuine, the assessee had also reconciled his stocks, purchases and sales thus deleted the addition. On further appeal: Held in favour of the assessee on facts.

The Tax Publishers

Asstt. CIT v. Jaybharat Textiles & Real Estate Ltd. [ITA No. 5163/Mum/2013, dt. 24-2-2016] : 2016 TaxPub(DT) 2241 (Mum-Trib)

Addition on alleged bogus sale under section 68 adjusted by share allotments

Facts:

Assessee during the scrutiny assessment was found to have received share capital of 100 crores from 5 parties. It was found on facts that the assessee had sold cotton to one Elpro properties for INR 10,13,00,265 until 31-3-2010, assessee paid 13,00,265 and balance 10 crore was converted into equity share capital. Similar entry was found with one Cyra capital Pvt. Ltd. for 30 crores. It was also found that the said parties though have sold have not paid the assessee the dues. Alleging these as bogus purchases assessing officer made additions under section 68. On appeal the assessees GP rate was found alright, but survey of the parties who were applicants were also traceable, PAN existed, returns were being filed found to be genuine, the assessee had also reconciled his stocks, purchases and sales thus deleted the addition. On further appeal:

Held in favour of the assessee on facts.