HC held that the Assessing Officer's disallowance of entire ...

High Court Validates Revenue's Claim: Entire Purchase Disallowance Upheld Due to Insufficient Evidence and Non-Cooperation

April 9, 2025

Case Laws Income Tax HC

HC held that the Assessing Officer's disallowance of entire purchases as bogus was justified. The Tribunal erred by estimating only 3% of purchases as bogus, contradicting established legal precedents. The Assessee's lack of cooperation and failure to produce critical transactional documentation substantiated the revenue's claim. Relying on previous judicial decisions in similar cases, the HC reversed the appellate authorities' orders. The court determined that the non-production of essential documents undermined the Assessee's credibility. Consequently, the HC restored the original assessment order, answering questions of law in favor of the Revenue and against the Assessee.

View Source

← Previous Next →

HC held that the Assessing Officer's disallowance of entire ...

High Court Validates Revenue's Claim: Entire Purchase Disallowance Upheld Due to Insufficient Evidence and Non-Cooperation

April 9, 2025

Case Laws Income Tax HC

You may also like:

The ITAT addressed various issues including disallowance u/s 14A r.w.r.8D, where Revenue challenged deletion of disallowance made by AO. ITAT upheld CIT(A)'s decision,...

Estimation of income - bogus purchases - case of bogus bills arranged from the entities and diamonds purchased from somewhere else at a lower cost - The ITAT noted the...

Disallowance of commission paid to foreign agents - The Tribunal upheld the disallowance of commission expenses to both domestic and non-resident companies due to the...

Estimation of income - Bogus purchases - The doubt, if any, is only with regard to the source of purchases. In such circumstances, the entire purchases cannot disallowed....

Nature of expenditure - Disallowance of expenditure under the "head repairs and maintenance"- AO rejected the assessee's contention and held that the assessee is...

The Appellate Tribunal addressed various issues: disallowance of provisions for waste disposal expenses due to lack of evidence and scientific basis, upheld disallowance...

Recovery of dues from company - employees dues - priority claim on debts - - Section 529A of the Companies Act, which gives workers’ dues a priority over all other...

Additions on account of bogus purchases - accommodation bills - AO only restricted to 20% of purchases claimed, it is surprising that the revenue now contends that the...

Disallowing claim of expenditure - non-carrying of business activity during the year under reference - The case involved an appeal by an assessee against the...

Disallowance of bogus purchase - Since, sales have not been doubted; entire disallowance of purchase is not sustainable - 6% disallowance of bogus purchase sustained by...

The ITAT upheld disallowance u/s 14A r.w.r.8D for expenditure on earning exempt income due to lack of fund utilization details. Dismissed appeal as assessee failed to...

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...

The Appellate Tribunal upheld the addition u/s 68 as the assessee failed to prove the genuineness of LTCG claimed u/s 10(38). The AO found discrepancies in off-market...

Restriction of disallowance - Bogus purchases - Restriction of disallowance @30% of total disallowance – addition of 12.5% net profit on bogus purchase is reasonable - AT

The case pertains to the estimation of income and disallowance of bogus purchases. The purchases were deemed sham transactions fabricated through bogus paper concerns...

Quick Updates: