Bogus purchases

GST fake Invoices, ITC frauds & its consequences

Goods and Services Tax - WHAT IS A FAKE INVOICE? Though, Fake Invoice is not defined under Goods & Services Tax Act, 2017. But in general, Fake Invoice refers to an Invoice which does not comply with the provisions of the Act and Rules. In simple terms, When a registered person issues a Tax Invoice without actual supply of goods […]...

Read More

Complete Guide for Taxation of Bogus or Hawala Purchase from suspicious dealer

Goods and Services Tax - Maharashtra Sales Tax Department has published ‘List of Suspicious Dealers, who have issued false bills, without delivery of goods. Such dealers have commonly referred as ‘hawala dealers’ The fact that the list purports to name only ‘Suspicious’ Dealers and not ‘confirmed hawala dealers’. ...

Read More

Investment in Penny Stock- Bogus or Cash Credit U/s. 68?

Goods and Services Tax - Now-a-days Income Tax department investigates alleged trading/investment in shares and securities with collusion/connivance with any listed companies or with share broker by conducting Search/ Survey or by asking details u/s 133(6) of the Income Tax Act 1961....

Read More

Bail granted to Youth accused of Evading GST by bogus invoices

Goods and Services Tax - In a recent judgment, the High Court of Punjab & Haryana, in case of Abhishek Modgil Vs State of U.T. Chandigarh, dated June 12, 2020, granted anticipatory bail to 24 years young boy accused on account of committing an offence of tax evasion to the tune of Rs. 4,02,00,136 by generating bogus invoices of sales and […]...

Read More

Assessment of Bogus Purchases

Goods and Services Tax - Surinder Jit Singh Chief Commissioner of Income Tax-3, New Delhi [email protected] Surinder Jit Singh is graduate in Mechanical Engineering from Punjab Engineering College in 1981 and joined Income Tax Department in 1984 as an IRS officer and has worked at Chandigarh, Ludhiana, Pune, Bombay, Amritsar and at Delhi in various capacities ...

Read More

I-T searches in Maharashtra & Goa reveals Fake ITC & Bogus Purchases

Goods and Services Tax - The Income Tax Department carried out a search and seizure operation on 25.08.2021 on a group based in Maharashtra and Goa. The group is a prominent steel manufacturer and trader of Pune, Nashik, Ahmednagar and Goa. More than 44 premises were covered in the search operation....

Read More

GST Council Law Committee to meet & discuss fake invoices on Nov 18

Goods and Services Tax - An urgent meeting of the Law Committee of the Goods and Service Tax (GST) Council has been convened tomorrow in New Delhi to discuss in detail the issue of fake invoices to claim input tax credit under the indirect tax regime. The meet will deliberate on ways of further tightening of the GST registration process […]...

Read More

Anti Evasion wing of CGST Delhi detects tax evasion of Rs. 38.05 crores

Goods and Services Tax - Anti Evasion wing of CGST Delhi has detected a case of Input Tax credit fraud through fake invoices issued by bogus firms. Investigations led to discovering the accused had also been generating bogus e-way bills to back the fake invoices....

Read More

DGGI, Gurugram, busts racket issuing fake GST invoices of more than Rs 136 Crores

Goods and Services Tax - irectorate General of GST Intelligence (DGGI), Gurugram Zonal Unit, Gurugram arrested Sh. Rajiv Gupta on 23.10.2019, partner in M/s RST Batteries, Mundka Delhi and Director of M/s RST Batteries Pvt. Ltd Bahadurgarh, Haryana for orchestrating a racket involving fake invoices valued at more than Rs 136 crores thereby defrauding the Governme...

Read More

Availment of Cenvat Credit Based on Bogus Invoices of Car Dealers by Insurance Companies

Goods and Services Tax - Chennai Zonal Unit of the Directorate General of Central Excise Intelligence Conducts Investigation under Summons Against 16 Insurance Companies Engaged in Providing Motor-Vehicle Insurance Policies, for Wrongly Availing Cenvat Credit to the Tune of Rs. 1200-2500 Crore on the Bogus Invoices of the Car Dealers....

Read More

ITAT sustains addition of 10% of amount of bogus purchases

Ashoka Buildcon Limited Vs ACIT (ITAT Pune) - Ashoka Buildcon Limited Vs ACIT (ITAT Pune) It is observed that the assessee allegedly purchased raw materials through the Hawala purchase bills and thereafter consumed the same in the power project In such a situation, it cannot be said that the entire amount of hawala purchase bills requires addit...

Read More

ITAT deletes addition for Purchase which was never made by Assessee

Raman Sood Vs ITO (ITAT Delhi) - Raman Sood Vs ITO (ITAT Delhi) On being seen ledger account of the seller of the goods in the relevant Financial year it is noted that there are no credits appearing in the said ledger as being no purchases from the said seller. No purchases made from the seller during the AYr. Under consideration....

Read More

No addition for bogus purchases in case of lack of enquiry by AO

Supertechforgings (India) Pvt.Ltd. Vs DCIT (ITAT Amritsar) - Supertechforgings (India) Pvt. Ltd. Vs DCIT (ITAT Amritsar) Conclusion: Additions made for alleged bogus purchase bills by AO was not justified as AO had not applied his mind to the information received from the Investigating Wing and he had not provided the opportunity to cross examine a person who...

Read More

ITAT deletes addition in respect of bogus Purchases

Supertech Forgings (India) Pvt. Ltd. Vs DCIT (ITAT Amritsar) - Supertech Forgings (India) Pvt. Ltd. Vs DCIT (ITAT Amritsar) No addition in respect of bogus Purchases can be made during the year under consideration No addition in respect of bogus Purchases can be made during the year under consideration where the purchases made from the same parties have been ac...

Read More

ITAT reduces addition for Bogus Purchase to 6% from 12.5%

Shri Kamal H. Shah Vs ITO (ITAT Mumbai) - Shri Kamal H. Shah Vs ITO (ITAT Mumbai) Undisputedly, the assessee has failed to prove genuineness of purchases and the authenticity of the dealers in both the impugned assessment years. The notices sent to the dealers under section 133(6) of the Act on the addresses furnished by the assessee by the...

Read More

Iron scrap supply under invoices of bogus firms detected

D.O.No.77/CH(IC)/2020 - (05/07/2021) - On the GST front, by innovating and using the recently introduced `RFID-Vehicle related Report', an analysis of risky vehicles was undertaken by the officers of DGGI (SZU). The verification revealed that iron scrap was being supplied by existent but un-registered firms under the invoices for GST ITC...

Read More

Measures recommended by GST Council to curb fake dealers/invoice rackets

NA - (23/12/2020) - Measures recommended by GST Council to curb fake dealers/invoice rackets notified - In-Person Verification Must For GST Registration. Identification of bogus dealers through data analytics and suspension. Mandatory 1% GST payment for those risky dealers and fly-by-night operators who show unusual la...

Read More

DGGI, Mumbai, arrests 2 persons in fictitious ITC case

Release ID: 1672299 - (12/11/2020) - Mumbai Zonal Unit of the Directorate General of GST Intelligence, CBIC has arrested Mr. Sunil Ratnakar Gutte, Director of M/s. Sunil Hitech Engineering Ltd., on charges of having fraudulently availed, utilized, as well as passed on fictitious Input Tax Credit, today, 12th November 2020....

Read More

I-T Dept busts a major racket of bogus billing & hawala transactions

NA - (11/11/2019) - Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi, 11th November, 2019 PRESS RELEASE Income Tax Department busts a major racket of bogus billing & hawala transactions Income Tax Department carried out searches in the first week of November, 201...

Read More

Consider Info related to Penny Stock in Scrutiny Assessment: CBDT

F.No.287/30/2014-IT (inv. II)-Vol-III - (16/03/2016) - Assessing Officer to ensure that information available in the 'Penny Stock' functionality which may be useful for the purpose of cases presently under scrutiny, is examined and considered while finalizing assessments and considering reopening of cases u/s 148 of the IT Act, 1961. ...

Read More

Recent Posts in "Bogus purchases"

GST fake Invoices, ITC frauds & its consequences

WHAT IS A FAKE INVOICE? Though, Fake Invoice is not defined under Goods & Services Tax Act, 2017. But in general, Fake Invoice refers to an Invoice which does not comply with the provisions of the Act and Rules. In simple terms, When a registered person issues a Tax Invoice without actual supply of goods […]...

Read More
Posted Under: Income Tax |

ITAT sustains addition of 10% of amount of bogus purchases

Ashoka Buildcon Limited Vs ACIT (ITAT Pune)

Ashoka Buildcon Limited Vs ACIT (ITAT Pune) It is observed that the assessee allegedly purchased raw materials through the Hawala purchase bills and thereafter consumed the same in the power project In such a situation, it cannot be said that the entire amount of hawala purchase bills requires addition. The Hon‟ble jurisdictional High C...

Read More

ITAT deletes addition for Purchase which was never made by Assessee

Raman Sood Vs ITO (ITAT Delhi)

Raman Sood Vs ITO (ITAT Delhi) On being seen ledger account of the seller of the goods in the relevant Financial year it is noted that there are no credits appearing in the said ledger as being no purchases from the said seller. No purchases made from the seller during the AYr. Under consideration. Evidentiary value […]...

Read More

No addition for bogus purchases in case of lack of enquiry by AO

Supertechforgings (India) Pvt.Ltd. Vs DCIT (ITAT Amritsar)

Supertechforgings (India) Pvt. Ltd. Vs DCIT (ITAT Amritsar) Conclusion: Additions made for alleged bogus purchase bills by AO was not justified as AO had not applied his mind to the information received from the Investigating Wing and he had not provided the opportunity to cross examine a person whose statement was recorded by the investi...

Read More

I-T searches in Maharashtra & Goa reveals Fake ITC & Bogus Purchases

The Income Tax Department carried out a search and seizure operation on 25.08.2021 on a group based in Maharashtra and Goa. The group is a prominent steel manufacturer and trader of Pune, Nashik, Ahmednagar and Goa. More than 44 premises were covered in the search operation....

Read More
Posted Under: Income Tax |

ITAT deletes addition in respect of bogus Purchases

Supertech Forgings (India) Pvt. Ltd. Vs DCIT (ITAT Amritsar)

Supertech Forgings (India) Pvt. Ltd. Vs DCIT (ITAT Amritsar) No addition in respect of bogus Purchases can be made during the year under consideration No addition in respect of bogus Purchases can be made during the year under consideration where the purchases made from the same parties have been accepted in subsequent year by Department....

Read More

ITAT reduces addition for Bogus Purchase to 6% from 12.5%

Shri Kamal H. Shah Vs ITO (ITAT Mumbai)

Shri Kamal H. Shah Vs ITO (ITAT Mumbai) Undisputedly, the assessee has failed to prove genuineness of purchases and the authenticity of the dealers in both the impugned assessment years. The notices sent to the dealers under section 133(6) of the Act on the addresses furnished by the assessee by the Assessing Officer were received [&helli...

Read More

Bogus purchases – no section 263 revision for estimating income at higher rates

M/s. Vaghasiya Exports Vs Pr. CIT (ITAT Mumbai)

M/s. Vaghasiya Exports Vs Pr. CIT (ITAT Mumbai) Ld. AO was clinched with the issue of suspicious purchases made by the assessee from various entities of tainted group. In fact, it is the only addition made in the assessment order. Specific queries were raised requiring the assessee to substantiate the purchases under suspicion. The assess...

Read More

Iron scrap supply under invoices of bogus firms detected

D.O.No.77/CH(IC)/2020 05/07/2021

On the GST front, by innovating and using the recently introduced `RFID-Vehicle related Report', an analysis of risky vehicles was undertaken by the officers of DGGI (SZU). The verification revealed that iron scrap was being supplied by existent but un-registered firms under the invoices for GST ITC of non-existent and bogus firms. Envelo...

Read More

ITAT restricts addition to 5% of alleged non-genuine purchases

ACIT Vs Rishab Steel House (ITAT Mumbai)

ACIT Vs Rishab Steel House (ITAT Mumbai) Since, Ld.CIT(A) followed the order of the Tribunal in assessee’s own case for the earlier as well as subsequent assessment years on identical issue and decided partly in favour of the assessee by directing the Assessing Officer to estimate the profit element in alleged non-genuine purchases at 5...

Read More

Browse All Categories

CA, CS, CMA (5,807)
Company Law (7,808)
Custom Duty (8,844)
DGFT (4,671)
Excise Duty (4,562)
Fema / RBI (4,901)
Finance (5,283)
Income Tax (38,962)
SEBI (4,219)
Service Tax (3,821)

Search Posts by Date

December 2021
M T W T F S S
 12345
6789101112
13141516171819
20212223242526
2728293031