Estimation of income - bogus purchases - quantification of ...

Tribunal Confirms Bogus Invoices, Orders Recalculation of Profit Margin for Accurate Taxable Income Adjustment.

April 20, 2024

Case Laws Income Tax AT

Estimation of income - bogus purchases - quantification of profit - The Tribunal noted that during investigations, the alleged suppliers were identified as bogus entities involved in issuing fake invoices without actual delivery of goods. Despite the taxpayer’s claims of making payments through banking channels, the assessing officer found no credible evidence to support the genuineness of the transactions. Consequently, the Tribunal agreed with the lower authorities in treating these purchases as bogus but redirected the case to assess the exact profit element attributable to these transactions, aligning with the principle that only the profit margin on such bogus transactions should be added to taxable income.

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Estimation of income - bogus purchases - quantification of ...

Tribunal Confirms Bogus Invoices, Orders Recalculation of Profit Margin for Accurate Taxable Income Adjustment.

April 20, 2024

Case Laws Income Tax AT

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