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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Bail granted to Youth accused of Evading GST by bogus invoices

Income 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 […]...

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Assessment of Bogus Purchases

Income Tax - Surinder Jit Singh Chief Commissioner of Income Tax-3, New Delhi sjsingh59@gmail.com 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 ...

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

Income 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....

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

Income 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...

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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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Entire Purchase cannot be disallowed by Considering it as Bogus

Ilesh Amrutlal Gadhia Vs DCIT (ITAT Mumbai) - The issue under consideration is whether the disallowance u/s 69C of entire purchase amount by considering it as bogus is justified in law?...

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Bogus GST ITC- HC rejects bail to prevent Tampering of Evidence

Mr. Ashok Kumar Vs Commissioner CGST & Central Excise (Bombay High Court) - Mr. Ashok Kumar Vs Commissioner CGST & Central Excise (Bombay High Court) Taking into consideration, the facts of the case, though the officers under the CGST Act, cannot seek custody of the arrested persons for completing the investigation, respondent’s contention that applicant’s detention...

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100% of Bogus Purchase cannot be disallowed as Sales are linked with Purchases

ACIT Vs Rashmikant V. Shah (ITAT Mumbai) - The issue under consideration is whether the CIT is correct in restricting the disallowance u/s 69C against bogus purchase at rate of 12.5% of the bogus purchases?...

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Bogus Purchases: ITAT reduces addition to 2% of bogus purchases

Prateek Gupta Vs. DCIT (ITAT Mumbai) - The issue under consideration is whether the addition made by CIT(A) on account of bogus purchases at rate of 12.5% of purchase u/s 69C is justified in law?...

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HC Grant Bail to person allegedly involved in issuing fake GST invoices

Gaurav Maheshwari Vs State of Rajasthan (Rajasthan High Court) - Gaurav Maheshwari Vs State of Rajasthan (Rajasthan High Court) High Court has decided to grant the bail to the petitioner who is allegedly guilty of creating bogus firms/companies solely for the purpose of fraudulently creating and issuing GST invoices without any sale/purchase and actual movement o...

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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...

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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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Recent Posts in "Bogus purchases"

Entire Purchase cannot be disallowed by Considering it as Bogus

Ilesh Amrutlal Gadhia Vs DCIT (ITAT Mumbai)

The issue under consideration is whether the disallowance u/s 69C of entire purchase amount by considering it as bogus is justified in law?...

Read More

Bogus GST ITC- HC rejects bail to prevent Tampering of Evidence

Mr. Ashok Kumar Vs Commissioner CGST & Central Excise (Bombay High Court)

Mr. Ashok Kumar Vs Commissioner CGST & Central Excise (Bombay High Court) Taking into consideration, the facts of the case, though the officers under the CGST Act, cannot seek custody of the arrested persons for completing the investigation, respondent’s contention that applicant’s detention in custody is necessary to prevent him ...

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100% of Bogus Purchase cannot be disallowed as Sales are linked with Purchases

ACIT Vs Rashmikant V. Shah (ITAT Mumbai)

The issue under consideration is whether the CIT is correct in restricting the disallowance u/s 69C against bogus purchase at rate of 12.5% of the bogus purchases?...

Read More
Posted Under: Income Tax |

Bogus Purchases: ITAT reduces addition to 2% of bogus purchases

Prateek Gupta Vs. DCIT (ITAT Mumbai)

The issue under consideration is whether the addition made by CIT(A) on account of bogus purchases at rate of 12.5% of purchase u/s 69C is justified in law?...

Read More

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

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
Posted Under: Income Tax |

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

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
Posted Under: Income Tax | ,

HC Grant Bail to person allegedly involved in issuing fake GST invoices

Gaurav Maheshwari Vs State of Rajasthan (Rajasthan High Court)

Gaurav Maheshwari Vs State of Rajasthan (Rajasthan High Court) High Court has decided to grant the bail to the petitioner who is allegedly guilty of creating bogus firms/companies solely for the purpose of fraudulently creating and issuing GST invoices without any sale/purchase and actual movement of goods. Further, the prevailing circums...

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Entire Purchases cannot be Treated as Bogus if Payments Made through Accounted Money

Bhagatram, Hyderabad Vs ACIT (ITAT Hyderabad)

Bhagatram Vs ACIT (ITAT Hyderabad) The issue under consideration is whether the CIT(A) is correct in considering the entire purchase as bogus purchase? ITAT states that it is also a known fact that Gold / Gold Jewellery is often purchased in the grey market in order to avoid taxes/customs duty etc., by the traders. In […]...

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Bail to CA who formed firms which later allegedly claimed fake ITC

Anup Ashopa Vs Union of India (Rajasthan High Court)

Anup Ashopa Vs Union of India (Rajasthan High Court) High Court allowed bail application of the petitioner who is a Chartered Accountant. The allegation against the petitioner who is a Chartered Accountant is of making fake firms who later on claimed input tax credit. Bail is subject to the conditions that he should furnished a […]...

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Addition for bogus purchases Limited to difference between Gross & Normal profit

Shri Pravin C. Bokadia Vs ITO (ITAT Mumbai)

The issue under consideration is whether CIT(A) is correct in enhancing the disallowance on account of bogus purchases to 100% as against 12.5% disallowance done by AO?...

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