Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (10) TMI 774 - AT - Income TaxPenalty u/s.271(1)(c) - bogus purchase - Held that:- In the instant case, the revenue has established beyond any reasonable doubt that the assessee was indulged in booking bogus bill of an unworthy supplier to inflate the expenses. The tell-tale evidence in the form of statement of the supplier and confirmation thereof in the cross-examination by assessee coupled with lack of proof towards delivery of purchase and clouded or suspicious banking transactions recorded to this effect leaves us in no manner of doubt that assessee had deliberately and willfully subverted the real source and character of the transactions. While doing so, the assessee also prevented the revenue from knowing the real source of supply and whereabouts of supplier of the alleged goods purchased, if any. In the circumstances, the appellate authorities were left with no option but to estimate the plausible overstatement of expenditure on purchases and thereby understatement of profits. The undeniable fact of bogus purchase entered in the books of accounts and thereby vitiating the taxable income by the assessee was found as a matter of fact after threadbare enquiry. In these circumstances, the ratio of the aforesaid decisions are not applicable at all. As a consequence, we find no merit whatsoever in the appeal of the assessee. Appeal of the Assessee is dismissed.
|