Fictitious book entries by M/s. PCL and M/s. Altos.

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..... elhi. Results of investigation in respect of M/s. PCL/Altos revealed that M/s. PCL and M/s. Altos were giving book entries to various persons/companies. The modus operandi adopted by these concerns is given below: M/s. PCL entered into computer leasing agreement with a number of persons/companies/business concerns. Under these agreements, Altos (manufacturing concern) would sell computers to M/s .....

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..... it was to make a fictious claim of depreciation and investment allowance. This will reduce the taxable income of the person/business concern. The advantage to PCL group were two fold. Firstly, it got 50% sale price as finance for a period of 36/50 months. Secondly, the so called lease rent paid over 36 to 50 months was claimed as business expenses. The arrangements are shown in the flow chart, as .....

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..... ith. The list may please be circulated among the Assessing Officers having jurisdiction over the cases and any such claim of depreciation/investment allowance by persons/companies as per list may be investigated in detail. Any fictitious claim of investment allowance/depreciation should be disallowed. [DDIT(INV.)'s, Unit-III, New Delhi Lr.F.No. DDIT(INV)/U-III
Circular, Trade Notice, Public N .....

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