Gujarat HC Upholds 25% Disallowance for Bogus Purchases

Vijay Proteins Ltd Vs CIT (Gujarat High Court) Overview of the Case The Gujarat High Court delivered a common judgment addressing both a reference application (Income-tax Reference No. 139/1996) and a tax appeal (Tax Appeal No. 243/2002) filed by Vijay Proteins Ltd. for the relevant assessment year. The core issues before the High Court involved the disallowance of expenditure related to bogus purchases and the consequential levy of a penalty for concealed income. The assessee, a public limited company engaged in producing edible oils, had its total income significantly enhanced by the Asses...