AO determined commission from alleged bogus purchases and sales, ...

Tax Authority Can't Make Presumptive Additions to Income Without Evidence of Actual Earnings.

January 6, 2025

Case Laws Income Tax AT

AO determined commission from alleged bogus purchases and sales, made addition. ITAT held AO should have either rejected books of account and determined actual profit, or retained returned income without making presumptive addition. AO cannot presume additional income without being actually earned by assessee. Gross taxable income cannot be less than returned income filed u/s 139(1). ITAT deleted AO's additions, decided in favour of assessee.

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AO determined commission from alleged bogus purchases and sales, ...

Tax Authority Can't Make Presumptive Additions to Income Without Evidence of Actual Earnings.

January 6, 2025

Case Laws Income Tax AT

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