2016 (11) TMI 1400 - HC - Income Tax

Bogus purchases - Held that - Considering the law declared by the Supreme Court in the case of Vijay Proteins Ltd. Vs. Commissioner of Income Tax 2015 (4) TMI 1146 - SUPREME COURT as held justification in disallowing 25% of the purchase price. We remit back the case to the Assessing Officer for deciding afresh on the factual matrix. The authority will accept the law but the transaction whether it is genuine or not will be verified by the Assessing Officer on the basis of the aforesaid three judgments. The issues are answered accordingly. The appeal is accordingly disposed of.

Summary

The High Court of Rajasthan remitted the case back to the Assessing Officer for fresh decision based on three specific judgments. The appeal challenging the Tribunal's decision was disposed of accordingly.