Disallowance cannot be made merely on presumption basis that the ...

Taxpayer Purchases in Cash: No Disallowance Without Proof of Grey Market Deals, Says Income Tax Section 40A(3).

December 13, 2011

Case Laws Income Tax HC

Disallowance cannot be made merely on presumption basis that the assessee had made the purchases by way of cash from the Grey market in violation of the provisions of section 40A(3) of the Act .... - HC

View Source

← Previous Next →

Disallowance cannot be made merely on presumption basis that the ...

Taxpayer Purchases in Cash: No Disallowance Without Proof of Grey Market Deals, Says Income Tax Section 40A(3).

December 13, 2011

Case Laws Income Tax HC

You may also like:

The Appellate Tribunal upheld the addition u/s 68 for alleged bogus Long Term Capital Gains due to off-market cash purchase of shares. The taxpayer's claim for deduction...

Purchase of material in the grey market - the addition, which could be made, was to account for profit element embedded in these purchase transactions to factorize for...

Bogus purchases - addition made u/s 69C - assessee is making local purchases without any transportation bills, delivery challans etc., the possibility of the Assessee...

Addition of bogus purchases - jewellery business - it is highly impossible for M/s Vitrag Jewels to first hand over the cash even without receiving the cheques from the...

Validity of reopening of assessment - reasons to believe - purchases from grey market - addition @ 12.50% of alleged bogus purchases - Dealings in the grey market give...

Bogus purchases - accommodation entry - at best it would be a case that purchases have been made from one party in grey market and bills have been obtained from another...

Bogus purchases addition - The only valid argument is that there could be no sales without purchases. But the price at which the goods were purchased remained a grey...

Bogus purchase - The supplier parties to whom cheque payments were made for purchases booked in books of account, returns the corresponding cash back to the assessee...

Addition of unverifiable purchase - The onus is on the assessee to explain when & how the cash has been paid for purchase from gray market and it is for the assessee to...

Addition u/s 40A(3) - Bogus purchases - there is no evidence whatsoever available on record to show that the said purchases were actually made by the assessee from the...

Addition of bogus purchases - The CIT (A) came to the conclusion that it is a case of purchases from gray market and thereafter, bills have been procured from hawala...

Bogus purchases - the purchases shown by the assessee is not in doubt, but the assessee might have not purchased from these parties who he might have purchased it from...

ITAT examined unverifiable purchases from 22 parties where assessee failed to provide conclusive proof. While books of accounts were accepted by AO and historical gross...

ITAT ruled that the appellant failed to substantiate the genuineness of purchase transactions involving shell companies. Despite presenting bank statements and tax...

Unexplained cash - It is difficult to comprehend that when the assessee was neither the partner nor the director nor the owner of the said company then how the cash can...

Quick Updates: