Bogus purchases

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

Income 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’. ...

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

Income 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....

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Bogus Purchases: Addition solely based on sales-tax dept. info not sustainable

Income Tax - ITAT Mumbai held in the case of Hiralal Chunilal Jain vs. ITO that addition for alleged Bogus Purchase not sustainable as AO had made the addition solely on the basis of information received from the Sales tax department without making any independent inquiry or following the principles of natural justice before making the addition. ...

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Why is Maharashtra States Businessmen’s mood OFF? It’s due to issues of MVAT SETOFF.

Income Tax - Businessmen of Maharashtra State are facing a question, whether they should purchase goods from Maharashtra or not? It seems that due to provisions of MVAT Setoff carrying out business in Maharashtra has become difficult....

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VAT Authorities denying Input tax credit on Flimsy Grounds

Income Tax - Denial to grant Input tax credit on Flimsy Grounds by the VAT Authorities without following the settled law laid down by Hon’ble Supreme Court of India and by the High Courts. Every Registered Dealer is the agent of Department of Excise & Taxation as while granting the registration, every registered dealer is authorized to collect [...

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

Income 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....

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Delhi VAT Dealers – Caution in Purchases against Tax Invoices

Income Tax - Buy goods from a trusted seller who files return and thereby pays due tax collected from you. Mere 2B statement filing by selling dealer not sufficient – selling dealer needs to back it up with return....

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Punjab State Excise and Taxation department unearthed bogus sale of 656 crore

Income Tax - In the biggest tax evasion fraud of this financial year, the State Excise and Taxation department has unearthed a bogus billing scam to the tune of Rs 656.71 crore by three renowned Ludhiana firms — Singhania International, Shree Vallabh Exports and Krishna Ispat Limited. As per investigations, the firms — all of which deal in [&helli...

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Addition for peak balance of bogus purchases not sustainable if AO not disputed genuineness of sales, Stock Register

Asst. CIT 19(3) Vs. M/s. Steel Line (India) (ITAT Mumbai) - Bogus Purchases: If the AO has not disputed the genuineness of sales and the quantitative details and the day to day stock register maintained by the assessee, a trader, he cannot make an addition in respect of peak balance of the bogus purchases. He can only determine the element of profit embedded...

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Bogus share capital: If document shows genuineness of transaction it cannot be treated as bogus for non appearance of shareholder

CIT Vs M/s. Orchid Industries Pvt. Ltd. (Bombay High Court) - The balance sheet and profit and loss account of these persons discloses that these persons had sufficient funds in their accounts for investing in the shares of the Assessee. In view of these voluminous documentary evidence, only because those persons had not appeared before the Assessing Officer w...

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Duly executed Transaction in shares cannot be treated as Bogus

Asst. CIT Vs. Bhavik Bharatbhai Padia (ITAT Ahemdabad) - When the shares were found to be credited and debited in the DEMAT account and sale of shares were found to be genuine, then what is the basis to contend that purchases of the said shares were not made by the appellant. ...

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Bogus purchases: HC remitted matter back and asked to follow Gujarat HC judgments

Commissioner of Income Tax-Central Vs M/s Carpet Mahal (Rajasthan High Court) - Considering the law declared by the Supreme Court in the case of Vijay Proteins Ltd. Vs. Commissioner of Income Tax, Special Leave to Appeal (C) No.8956/2015 decided on 06.04.2015 whereby the Supreme Court has dismissed the SLP and confirmed the order dated 09.12.2014 passed by the Gujarat High Cour...

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Addition based on mere Sales Tax Dept observations not sustainable

Asstt. Commissioner of Income Tax 25(2) Vs Tarla R Shah (ITAT Mumbai) - On the facts and in the circumstances of the case and in law, the ld. CIT(A) erred in deleting the addition of Rs 14,36,653 which was made by invoking the provisions of section 69C of the I. T. Act by treating the purchase are genuine without appreciating the fact that the notices u/s 133(6) issued ...

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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. ...

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Bogus purchases’s Popular Posts

Recent Posts in "Bogus purchases"

Addition for peak balance of bogus purchases not sustainable if AO not disputed genuineness of sales, Stock Register

Asst. CIT 19(3) Vs. M/s. Steel Line (India) (ITAT Mumbai)

Bogus Purchases: If the AO has not disputed the genuineness of sales and the quantitative details and the day to day stock register maintained by the assessee, a trader, he cannot make an addition in respect of peak balance of the bogus purchases. He can only determine the element of profit embedded in the bogus purchases. On facts, the a...

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Bogus share capital: If document shows genuineness of transaction it cannot be treated as bogus for non appearance of shareholder

CIT Vs M/s. Orchid Industries Pvt. Ltd. (Bombay High Court)

The balance sheet and profit and loss account of these persons discloses that these persons had sufficient funds in their accounts for investing in the shares of the Assessee. In view of these voluminous documentary evidence, only because those persons had not appeared before the Assessing Officer would not negate the case of the Assessee...

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Duly executed Transaction in shares cannot be treated as Bogus

Asst. CIT Vs. Bhavik Bharatbhai Padia (ITAT Ahemdabad)

When the shares were found to be credited and debited in the DEMAT account and sale of shares were found to be genuine, then what is the basis to contend that purchases of the said shares were not made by the appellant. ...

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Bogus purchases: HC remitted matter back and asked to follow Gujarat HC judgments

Commissioner of Income Tax-Central Vs M/s Carpet Mahal (Rajasthan High Court)

Considering the law declared by the Supreme Court in the case of Vijay Proteins Ltd. Vs. Commissioner of Income Tax, Special Leave to Appeal (C) No.8956/2015 decided on 06.04.2015 whereby the Supreme Court has dismissed the SLP and confirmed the order dated 09.12.2014 passed by the Gujarat High Court and other decisions of the High Court ...

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Addition based on mere Sales Tax Dept observations not sustainable

Asstt. Commissioner of Income Tax 25(2) Vs Tarla R Shah (ITAT Mumbai)

On the facts and in the circumstances of the case and in law, the ld. CIT(A) erred in deleting the addition of Rs 14,36,653 which was made by invoking the provisions of section 69C of the I. T. Act by treating the purchase are genuine without appreciating the fact that the notices u/s 133(6) issued to the parties were returned unnerved as...

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Purchases cannot be treated as bogus merely based on info from sales-tax dept. or non-reply of 133(6) notices or non-production of suppliers

M/s. Geolife Organics Vs ACIT –23(2) (ITAT Mumbai)

Merely relying upon the information from the Sales Tax Department or the fact that parties were not produced the Assessing Officer could not have treated the purchases as bogus and made addition. ...

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Non-appearance of supplier cannot be the sole basis to terms purchase as bogus

M/s Beauty Tax Vs DCIT, ((ITAT Jaipur)

Non-appearance of the supplier in absence of any other corroborate evidence cannot be sole basis to justify the stand of the Revenue that a transaction of purchase is bogus...

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Defect in notice u/s 274 do not vitiates penalty proceedings; Addition for Bogus purchases U/s. 69C?

Earth moving Equipment Service Corporation Vs Deputy Commissioner Of Income Tax (ITAT Mumbai)

Mere defect in the notice u/s 274 do not vitiates the penalty proceedings and no prejudice was caused to the assessee by non- marking of appropriate clause. Addition for Bogus purchases cannot be made under Section 69C as 'unexplained expenditure' if purchase are duly disclosed and payments are made through banking channels. The fact t...

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Bogus share capital: Source of source relevant even for period before amendment to section 68

Pragati Financial Management Pvt. Ltd Vs CIT (Calcutta High Court)

Main thrust of the appellant’s case is that the provisions of Section 68 of the Act as amended could not be given retrospective operation and if that position of law was accepted, then it was not open to the C.I.T. to direct an enquiry to ascertain the source and genuineness of the sums being projected by the appellants as capital recei...

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Purchase cannot be termed bogus for mere non-appearance of supplier

M/s Beauty Tax Vs DCIT, ((ITAT Jaipur)

Merely non-appearance of the supplier in absence of any other corroborate evidence cannot be a basis to justify the stand of the Revenue that the transaction of purchase is bogus. ...

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