The assessing officer (AO) made additions to the assessee's ...

Purchases and expenses scrutinized - some upheld, some deleted by tax authorities.

Case Laws Income Tax

October 23, 2024

The assessing officer (AO) made additions to the assessee's income based on alleged bogus purchases and unexplained investments. The key points are: Addition of Rs. 209.82 lacs under 'others' category was rightly deleted by CIT(A) due to lack of proper findings. Out of total purchases, Rs. 5,11,56,526 were from 4 entirely bogus parties, while Rs. 5,35,20,325 were partially bogus from 15 parties. Since the assessee offered Rs. 5,53,25,652 as additional income, and considering 10% leakage on partially bogus purchases, the net addition sustained is Rs. 11,82,906. Disallowance of sub-contractor's expenses of Rs. 157 lacs was upheld, as the assessee admitted only Rs. 140.18 lacs, and the GST component was adjusted against output liability. Addition of unexplained investment u/s 69, based solely on loose excel sheets found during search, was deleted following the ITAT's decision in Kranti Impex case, which held that undated, unsigned papers cannot be the sole basis for determining undisclosed income.

View Source

← Previous Next →

The assessing officer (AO) made additions to the assessee's ...

Purchases and expenses scrutinized - some upheld, some deleted by tax authorities.

Case Laws Income Tax

October 23, 2024

You may also like:

Service tax on sale and purchase of flats – constitutional validity upheld by HC

CIT(A) determined profit at 5.47% on total purchases. Assessee produced sufficient evidence regarding purchases, movement of goods, GST payment on transportation,...

The Supreme Court interpreted the definition of "purchase price" u/s 2(18) of the Gujarat Value Added Tax Act, 2003 (GVAT Act). It held that purchases on which value...

Appellant paid service tax on entire value of cleaning services, but for remaining services paid tax only on margin money after deducting expenses. Commissioner...

Denial of claim of loss or to categorize certain expenses as pre-operative expenses - commencement of business during the year - assessee’s business was ‘set up’ or not...

CIRP - Carry forward of losses - The benefit of carry forward of losses can be availed by the Appellant subject of opportunity to be given to Income Tax Authority to...

Unexplained cash credit addition rightly deleted as amount credited in sales account and offered as income. Non-genuine purchases addition rightly deleted based on...

The Commissioner of Income Tax (Appeals) rejected the assessee's plea challenging the validity of proceedings u/s 153C and upheld their validity. The authorities below...

This case deals with the levy of penalties u/ss 271AAA and 271(1)(c) of the Income Tax Act in relation to various additions made to the assessee's income based on seized...

The Appellate Tribunal considered the legality of additions based on a diary seized from a third party. The Tribunal held that the presumption u/s 132(4A) of the Act...

Control of income-tax authorities - U/s 118 of IT ACT 1961 - Specifies the income-tax authority or authorities as subordinate to such other income-tax authority or...

The assessee purchased agricultural land whose stamp duty valuation was lower than the actual purchase consideration. The authorities sought to invoke section 56(2)(x)...

The Appellate Tribunal addressed various issues in the case. It directed the AO to delete the disallowance of consequential depreciation on unverified expenses and remit...

ITAT dealt with the addition of notional interest on interest-free advances and disallowance of inflated import purchases. Assessee's advances to brokers were assigned...

This case deals with transfer pricing adjustments made by the tax authorities regarding international transactions involving sale of Paclitaxel, Disodium Pamidronate,...

Quick Updates: