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Income Tax - Highlights / Catch Notes

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Bogus Purchase - determinitation of income - Merely, it is ...

Income Tax

June 11, 2013

Bogus Purchase - determinitation of income - Merely, it is pointed out that the assessee was a trader and ITAT retained 12.5% of the purchase towards its possible profit - no merit in appeal - HC

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  2. The purchases made cannot be held as bogus merely on presumption and surmises and on the sole reasoning that the assessee was unable to produce delivery challan / angadia receipts.

  3. Levy of excise duty @1% or 5% on exempted goods vide Finance Act, 2011 - petition by the traders - levy on purchase of coal - decided against the purchasers / traders - HC

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  5. Bogus purchases - Disallowance merely on the basis of suspicion because the sellers and the canvassing agents have not been produced before them is not warranted - HC

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  8. Bogus purchases - In a case where sales are considered genuine, no addition, on account of bogus purchases, can be made - AT

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  10. Restriction of disallowance - Bogus purchases - Restriction of disallowance @30% of total disallowance – addition of 12.5% net profit on bogus purchase is reasonable - AT

 

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