Documentary Evidence Mandatory for admissibility of Cash Expenditure

Shri Shantilal B. Parekh Vs ITO (ITAT Mumbai) BOGUS PURCHASES – On the basis of information, huge racket of hawala dealers involved in issuing bogus invoices to allow the traders to claim tax credit was discovered. Assessee was alleged to be one of the beneficiary to who dealt with certain parties engaged in hawala racket. As per AO, assessee was engaged in bogus purchase of INR 2,00,678, wherein, only the bill was received by assessee without receipt of material. The concluded proceeding were re-opened by issuing notice dated 10.05.2013 u/s. 148 and were asked to prove the genuineness of th...