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

Tax Authority Can't Add Income Without Proof, ITAT Rules in Favor of Taxpayer Over Alleged Bogus Transactions.

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.

View Source

← Previous Next →

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

Tax Authority Can't Add Income Without Proof, ITAT Rules in Favor of Taxpayer Over Alleged Bogus Transactions.

January 6, 2025

Case Laws Income Tax AT

You may also like:

Estimation of income - bogus purchases - quantification of profit - The Tribunal noted that during investigations, the alleged suppliers were identified as bogus...

The bogus transactions are a camouflage and dishonest attempt to avoid tax, resulting in addition to the assessee's income. The AO's approach should be well-considered,...

Estimation of income - bogus purchases - The Tribunal considered the facts surrounding the alleged bogus purchases. Despite the inability of the assessee to establish...

The assessee had demonstrated the genuineness of the share transaction resulting in long-term capital gains, which were claimed as exempt u/s 10(38). The Revenue...

Tax authority rejected rectification application filed by taxpayer for zero-rated supply citing violation of principles of natural justice. Court examined impugned...

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 taxpayer, an IT/support services provider, received reimbursements from its associated enterprises (AEs) for the cost of providing such services. The tax authorities...

The Assessee, a regular investor in shares, made investments and sold a particular script when prices were high, resulting in Long Term Capital Gains (LTCG). The...

The High Court held that the Assessing Officer (AO) lacked sufficient material or evidence to reopen the assessment u/s 147 for the Assessment Year 2013-14 in respect of...

The Appellate Tribunal addressed the issue of alleged bogus long-term capital gain u/s 10(38) concerning a transaction involving shares of a company flagged as a penny...

Revision u/s 263 - unverified URD purchases - All these transactions are interconnected and linked with each other. If any of the transaction is doubted then...

Penalty u/s 271AAB - treating an amount included in the Return of Income as undisclosed income susceptible to penalty - search conducted u/s 132, assessment carried out...

Clarification regarding number of Taxpayers added after Demonetization

New Personal Income Tax Regime heralds significant relief, especially for Middle Class Taxpayers

Higher rate of tax @60% u/s 115BBE - though the alleged surrendered income is a business income but since assessee being individual having no limitation of earning...

Quick Updates: