ITAT adjudicated a tax dispute concerning alleged bogus ...

Tax Dispute Resolved: No Evidence of Bogus Purchases, Tribunal Upholds Assessee's Accounts and Rejects Department's Claims

June 5, 2025

Case Laws Income Tax AT

ITAT adjudicated a tax dispute concerning alleged bogus purchases and income estimation. The tribunal found no evidence of undervalued sales or inflated purchases after examining documentary proof of raw material delivery to the assessee's factory in Himachal Pradesh. The CIT(A) had previously accepted the assessee's books of accounts. The tribunal dismissed the department's appeal, ruling that applying a 5.94% gross profit rate on alleged bogus purchases was unjustified. The court determined that purchases were made at par or lower rates compared to other transactions, negating potential additional income. Consequently, the tribunal allowed the assessee's appeal and rejected the department's claim of embedded profits in the contested purchases.

View Source

← Previous Next →

ITAT adjudicated a tax dispute concerning alleged bogus ...

Tax Dispute Resolved: No Evidence of Bogus Purchases, Tribunal Upholds Assessee's Accounts and Rejects Department's Claims

June 5, 2025

Case Laws Income Tax AT

You may also like:

In a tax dispute before ITAT involving search and survey operations by CGST authorities, the tribunal examined allegations of bogus purchases based on incriminating...

Bogus purchase bills from certain ‘hawala’ dealers - The Tribunal found the assessee failed to substantiate the genuineness of the purchases from alleged Hawala dealers,...

Estimation of income - bogus purchases - The Tribunal considered the facts surrounding the alleged bogus purchases. Despite the inability of the assessee to establish...

The High Court held that once the Income Tax Appellate Tribunal (ITAT) found no cogent or convincing evidence from the Revenue to allege bogus purchases, it was wrong to...

ITAT held that the PCIT's revision order under Section 263 was invalid. The tribunal found no substantive evidence to support the claim of bogus purchases and determined...

ITAT resolved a dispute regarding donation deduction under section 80G. The tribunal determined that the assessee's donation was in cash, not in kind, based on evidence...

The ITAT Mumbai addressed two key issues in the case. Firstly, regarding the penalty u/s 271(1)(c), the tribunal held that the absence of a tick mark on the notice did...

Estimation of income - bogus purchases - case of bogus bills arranged from the entities and diamonds purchased from somewhere else at a lower cost - The ITAT noted the...

The ITAT Hyderabad held that the addition of bogus purchases based on information from the Investigation Wing was not justified. The burden of proof shifted to the AO...

Addition u/s 69C - bogus purchases of diamonds - The decision emphasizes the principle that where the genuineness of purchases is in question, but corresponding sales...

The case pertains to the estimation of income and disallowance of bogus purchases. The purchases were deemed sham transactions fabricated through bogus paper concerns...

Bogus share transactions involving abnormal price rise in penny stock shares - Assessee produced evidence of share purchase, existence in demat account - AO failed to...

The Appellate Tribunal upheld the reopening of assessment u/s 147 due to the assessee providing bogus accommodation loss entries. The AO had reasons to believe in the...

CIT(A) determined profit at 5.47% on total purchases. Assessee produced sufficient evidence regarding purchases, movement of goods, GST payment on transportation,...

The assessee had made purchases from M/s. HJM Fuels Pvt. Ltd., which the Department treated as bogus and added a profit element. The assessee pointed out discrepancies...

Quick Updates: