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2024 (2) TMI 983 - ITAT MUMBAIBogus purchase bills from certain ‘hawala’ dealers - reliance on information provided by Sales Tax Department, Maharashtra - HELD THAT:- Assessee has to demonstrate that the alleged bogus purchases have been entered into the stock register and the corresponding sales bills through which those goods have been delivered to the subsequent buyers. In the case the AO has not doubted the sales of the assessee but the assessee has failed to demonstrate whether the goods purchased through those bogus bills have been actually transmitted further to the subsequent buyers. Since, the assessee has not succeeded in either producing the stock register and or to link the quantity corresponding to the bogus purchases with the quantity sold in the sales bills. In such a situation, it cannot be presumed that assessee had made purchases from grey market and only bogus bills were received from those ‘hawala’ dealers. Wherever, goods sold are tallied or linked with the goods recorded in the stock register as purchased, in those cases , it could be presumed that an assessee might have purchased goods in cash from grey market, but in the case of the assessee in absence of stock register this could not be verified and therefore, we justify the action of the CIT(A) and uphold disallowance of the entire bogus purchases. Decided against assessee.
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