Income Tax : The issue concerns how purchase classification affects tax treatment. The key takeaway is that bogus purchases lead to full disall...
Income Tax : Courts have clarified that purchases cannot be disallowed without proper evidence. Genuine transactions supported by documents can...
Income Tax : ITAT held that section 69 cannot be invoked where purchases are duly recorded in books and paid through banking channels, making t...
Income Tax : The Tribunal held that purchases cannot be fully disallowed merely on suspicion and supplier deficiencies. The issue was remanded ...
Income Tax : bogus purchases is a arisen, there has not been a consistent approach of different courts, as facts are not found similar in such ...
Goods and Services Tax : DGGI in Gurugram has successfully dismantled a massive network of fake entities involved in fraudulent tax practices. The operatio...
Goods and Services Tax : DGGI Gurugram unmasked an Input Tax Credit fraud operation with 461 shell entities, causing a loss of Rs. 863 crore to exchequer....
Goods and Services Tax : CGST Navi Mumbai arrests one person for availing and passing on fake ITC on bogus invoices On 18th August 2022, the Proprietor/ma...
Goods and Services Tax : CGST Bhiwandi Commissionerate arrests two persons for availing and passing on fake ITC on bogus invoices of Rs. 55 crore Officers ...
Income Tax : Income Tax Department conducts search operations in West Bengal The Income Tax Department initiated search operation in the case o...
Income Tax : Tribunal observed that the Assessing Officer failed to establish any mismatch in stock, sales, or accounting records before making...
Income Tax : The Hyderabad ITAT held that purchases cannot be treated as bogus merely because the supplier failed to respond to a notice under ...
Income Tax : ITAT Rajkot held that in cases involving bogus purchases, only the profit element embedded in such purchases can be added to incom...
Income Tax : Delhi ITAT held that cancellation of GST registration and non-response from suppliers alone cannot justify treating entire purchas...
Income Tax : ITAT Delhi held that where sales are accepted and purchases are supported by invoices and banking transactions, only the profit el...
Goods and Services Tax : The Ministry of Finance, Government of India, recently released Instruction No. 03/2023-GST, dated 14th June, 2023, outlining stri...
Goods and Services Tax : Government of India has noticed instances of fake GST registrations and issuance of bogus invoices leading to revenue loss. A meet...
Goods and Services Tax : Instructions to ensure careful handling of registration, cancellation, and revocation of registration processes for fake taxpayers...
Goods and Services Tax : Our experience shows that the bill traders after getting registrations, issue invoices without supply of goods or services for hug...
Goods and Services Tax : Assessment of return non-filers u/s 62 is done as a measure to ensure filing of return. However, the taxpayers are' detected as no...
ITAT Kolkata held that entire bogus purchases must be added under Section 69C where the supplier was proved to be a paper entity and no evidence of actual delivery of goods existed. The ruling reiterates that bank payments and invoices alone cannot establish genuineness.
The Gujarat High Court upheld the ITAT order restricting disallowance on alleged bogus purchases to 6% instead of 100%. The Court held that only the income component embedded in disputed transactions could be taxed.
The Tribunal held that full disallowance of purchases was not justified where corresponding sales and quantitative stock records were accepted. ITAT sustained only estimated disallowance at 12.5% of disputed purchases.
The Gujarat High Court held that only the income component embedded in alleged bogus purchases could be taxed instead of the entire purchase amount. The Court upheld the ITAT order restricting disallowance to 6% of disputed purchases linked to accommodation entries.
The ITAT ruled that accepted sales necessarily imply corresponding purchases, even if sourced through the grey market. The addition was therefore restricted to estimated profit instead of the full purchase amount.
The Mumbai ITAT held that no separate addition for alleged bogus purchases can be made where the assessee has already disclosed a higher gross profit on disputed transactions. The Tribunal relied on Bombay High Court rulings limiting additions only to differential GP.
The court held that only the income component of alleged bogus purchases can be taxed, not the entire transaction. It upheld the Tribunal’s restriction of addition to 6%. The ruling reinforces limits on full disallowance.
The issue concerns how purchase classification affects tax treatment. The key takeaway is that bogus purchases lead to full disallowance, while non-genuine ones attract only profit-based additions.
The issue involved additions based on alleged bogus purchases without VAT payment. The Tribunal remanded the matter pending the High Court’s decision on similar cases.
The Tribunal deleted purchase disallowances after noting invoices, transport records, weighbridge slips, tax returns and bank payments supported actual procurement and use of materials in infrastructure projects.
