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...
Our experience shows that the bill traders after getting registrations, issue invoices without supply of goods or services for huge amount within a short span of time.
AO did not make any addition with regard to URD purchases, which were considered to be bogus or inflation of expenses, in the respective years. Without making addition of alleged bogus/inflated expenses, the A.O. could not disallow depreciation
Ashok Popatbhai Chaudhari Vs ITO (ITAT Mumbai) The Income Tax Officer in this case has made 100% addition on account of bogus purchase resulting in disallowance of Rs. 56,085/-. Upon assessee’s appeal ld. CIT(A) confirmed the same. It is settled law that when sales are not doubted, 100% disallowance for bogus purchase cannot be done. […]
DCIT Vs Shoreline Hotels Pvt. Ltd. (ITAT Mumbai) In these cases, the AO reopened the assessment order passed u/s 143(3) of the Act, on the basis of information received from the DGIT (Inv.) Mumbai to the effect that during the previous year the assessee had obtained fake purchase bills from bogus parties who used to […]
ITO Vs N.G. Group (ITAT Mumbai) ITAT observed that that AO has invoked the provision of section 41(1) without bringing on record any cogent material. For how long the account is outstanding and on what basis of his enquiry, AO has come to the conclusion that these accounts are not payable. Devoid of these details, […]
Assessment of return non-filers u/s 62 is done as a measure to ensure filing of return. However, the taxpayers are’ detected as non-existent / non-genuine and the registrations are cancelled consequently, the issue of addressing the liability arising out of the UAO has cropped up which is dealt with in this circular.
It not the entire sales consideration which is to be brought to tax but only the profit attributable on the total unrecorded sales consideration which alone can be subject to income tax
R R Carwell Pvt. Ltd. Vs DCIT (ITAT Delhi) Disallowance of bogus purchases reduced to 2% when existence of some parties proved and payments were routed through bank Facts- The assessee is engaged in the application/job-work of Auto Additives and Car care Products across various two-wheelers and four-wheelers authorized service centers. It filed its ROI […]
ITO Vs Shree Deepak Banwarilal Agarwal (ITAT Surat) We find that during the assessment the AO made addition of 100% of purchases shown by the assessee from four parties which were managed by “PK Jain” and his group. The AO made addition on the basis of report of Investigation Wing about the search & seizure […]
Once bogus purchases had gone into profit and loss account, and sales were not doubted, only option left with AO was to make addition of gross profit embedded in bogus purchases. Accordingly, AO was directed to restrict addition to the extent of 9.25% of impugned purchases as assessee had shown gross profit ratio of 9.25% in the year ending March, 2012.
