2016 (11) TMI 1464 - 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 wherein confirmed the order passed by the Gujarat High Court and other decisions of the High Court of Gujarat in the case of Sanjay Oilcake Industries Vs. Commissioner of Income Tax (2008 (3) TMI 323 - GUJARAT HIGH COURT) and N.K. Industries Ltd. Vs. Dy. C.I.T. 2016 (6) TMI 1139 - GUJARAT HIGH COURT . Justification in disallowing 25% of the purchase price.

Summary

The High Court of Rajasthan remitted the case back to the Assessing Officer for fresh decision based on three specific judgments, including one from the Supreme Court. The Tribunal partly allowed appeals from both the assessee and the Department. The Assessing Officer will verify the genuineness of the transaction in light of the mentioned judgments.