Bogus Purchase Bill, Income Tax

[Prashant Premlani]

Dear Sir,

My purchases have been proved to be bogus.Will sales related to such purchase will also be bogus and assessee will be able to claim lower tax benefit.Please refer case law or section supporting answer.

Thanks & Regards

Prashant

Posts / Replies

[Ganeshan Kalyani]

If bogus purchase is made then the set off is reduced by that amount resulting in payment of tax. Some case stated that though bogus purchase is made purchaser will be allowed to take the credit.