#bogus purchases

[taxgurusandeep]

CIT vs M.K. Brothers (Gujarat High Court),

CIT vs M.K. Brothers (Gujarat High Court),

Gujarat High Court Commissioner Of Income-Tax vs M.K. Brothers  Date- 25 October, 1985 Equivalent citations: (1987) 163 ITR 249 Guj JUDGMENT Kapadia, J.

1. The Tribunal has referred the following question for opinion of this court :

“Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in law in deleting the addition of Rs. 52,254 added by the…

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Purchase cannot be treated Bogus based merely on the basis of statements given before Sales tax department

Purchase cannot be treated Bogus based merely on the basis of statements given before Sales tax department

ITO vs. Deepak Popatlal Gala (ITAT Mumbai), I.T.A. No.5920/Mum/2013, Date of Pronouncement :27.03.2015

Purchase cannot be treated Bogus based merely on the basis of statements given before Sales tax department

The next issue relates to disallowance made out of purchases and assessed u/s 69C of the Act. We heard the parties and perused the The total purchase expenditure claimed by the assessee…

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AO can not treat purchase as Bogus merely because Supplier is declared Hawala dealer by Sales tax Department

AO can not treat purchase as Bogus merely because Supplier is declared Hawala dealer by Sales tax Department

Ramesh Kumar & Co vs. ACIT (ITAT Mumbai), I.T.A. No.2959/Mum/2014,Date of Pronouncement :28.11.2014

In this case AO has made the addition as some of the suppliers of the assessee were declared Hawala dealer by the Sales tax Department. This may be a good reason for making further investigation but the AO did not make any further investigation and merely completed the assessment on suspicion .…

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Sales amount by itself cannot represent income of assessee who has not disclosed sales

Sales amount by itself cannot represent income of assessee who has not disclosed sales

It cannot be a matter of an argument that the amount of sales by itself cannot represent the income of the assessee who has not disclosed the sales. The sales only represented the price received by the seller of the goods for the acquisition of which it has already incurred the cost. (more…)

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Only net profit on unaccounted sales can be taken as income if Purchase in duly accounted

Only net profit on unaccounted sales can be taken as income if Purchase in duly accounted

CIT V/s. Shri Hariram Bhambhani (Bombay High Court), Income Tax Appeal No. 313 of 2013, Dated- 04th February 2015.

Issue- Whether on the facts and in the circumstances of the case and in law, the Tribunal was justified in upholding the order of the CIT(A) in which he had directed the Assessing Officer to tax 4% net profit on unaccounted sales of Rs.35 lakhs even though no evidence of unaccounted…

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