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Bogus purchases- Entire Purchase amount cannot be disallowed
Case Law Details
- Case Name
- The Principal Commissioner of Income Tax-25 Vs Pinaki D. Panani (Bombay High Court)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Courts
- All High Courts, Bombay High Court
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Pr. CIT Vs Pinaki D. Panani (Bombay High Court)
Even if the purchases made from the parties in question are to be treated as bogus, it does not necessarily mean that entire amount should be disallowed and that no benefit should be given to the Respondent-Assessee. Assuming that the purchasers from whom the purchases were made were bogus, in view of the finding of fact that the material was consumed, the question would be of extending the percentage of net profit on total turnover. This would be a matter of calculations by the concerned authority.
FULL TEXT OF THE HIGH COURT...
