Allegation of bogus purchase without verification of books not justifiable: Kerala HC

Diamond Food Products Vs CIT (Kerala High Court)

Kerala High Court held that allegation regarding bogus purchases of raw-material i.e. paddy without verification of books of accounts including stock register, ledger, etc. is not justifiable in law. Accordingly, disallowance u/s. 37(1) of the Income Tax Act set aside.

Facts- The appellant had filed its return of income declaring a total income of Rs.71,15,290/- by declaring a net profit of 0.91%. While completing the assessment, the assessing authority considered the appellant’s claim for deduction of t

Please become a Premium member. If you are already a Premium member, login here to access the full content.