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No-show of parties alone can't label purchases as bogus

The Income Tax Appellate Tribunal (ITAT) recently ruled in favor of GTM Builders & Promoters Pvt. Ltd., dismissing the Assessing Officer's (AO) allegations of bogus transactions. The AO had disallowed purchases worth Rs. 3,35,87,118 made from four p…

Mere circular book entries can't be added as bogus purchases

In a recent case, the Tribunal partially upheld the addition of Rs. 13,02,88,386/- made by the Assessing Officer (AO) under Section 69C of the Income Tax Act, 1961, on account of alleged bogus purchases. The assessee, a corporate entity trading in g…

How much can AO add back to your income if you've unverified creditors?

In a recent case, the ITAT restricted the addition made by the Assessing Officer (AO) under Section 68 of the Income Tax Act, 1961, on account of unverified/non-existent/bogus sundry creditors in the books of the assessee. The assessee, an individua…

AO can't solely rely on forced confessions during survey for add backs.

In a recent case involving Smt. Usha Rani Talla, the ITAT upheld the deletion of additions made by the AO to her income based on a statement recorded during a survey under Section 133A of the Income Tax Act. The additions pertained to Rs. 20 lakhs t…

No books of accounts are to be maintained, ITAT orders deletion of income add b…

The Income Tax Appellate Tribunal (ITAT) has allowed an appeal challenging additions made by the Assessing Officer (AO) to the appellant's income. The appellant, a kirana merchant, was not required to maintain any books of account as per Section 44A…

Only the profit from bogus purchases, not the entire amount, should be taxed if…

The case involves an appeal by the Revenue against the order of the Income Tax Appellate Tribunal (ITAT) regarding the treatment of bogus purchases made by the assessee. The Revenue contended that the entire amount covered by such purchases should h…

BGR Energy Systems embroiled in bogus purchases case, court upholds tax departm…

This case revolves around BGR Energy Systems Ltd. (BGRESL), a company engaged in manufacturing capital goods and executing EPC contracts. During a search operation, the Income Tax Department found evidence suggesting that BGRESL had obtained bogus p…

Appeal Allowed: No Addition on Account of Bogus Purchases and Disallowance u/s …

The Income Tax Appellate Tribunal, Delhi Bench, allowed the appeal filed by Firepro Wireless & Technologies Pvt. Ltd. against the order of the CIT(A)-31, New Delhi relating to assessment year 2007-08. The Tribunal held that no addition on account of…

Bombay ITAT allows trader’s appeal, directs AO to restrict additions to GP rate…

The case involves appeals filed by an assessee, a trader of ferrous and non-ferrous metals, against the CIT(A)’s order confirming the AO’s ad-hoc disallowance of 12.5% of trading purchases from alleged hawala parties. The ITAT set aside the CIT(A)’s…

Parties no longer stay at said address can't prove that purchases are bogus.

The Income Tax Appellate Tribunal (ITAT) Delhi Bench, in the case of Dy. Commissioner of Income Tax, Cir.14(1), New Delhi vs. M/s Padmini VNA Mechatronics Pvt. Ltd., dismissed the departmental appeals against the deletion of additions on account of …

The ITAT held it was premature to levy penalty at this stage as CIT(A)'s second…

The case involves M/s. Kottakkal Wood Complex appealing against the penalty order u/s. 271(1)(c) of the Income Tax Act for the assessment years 2002-03 to 2008-09. The appeals were filed against the consolidated order of the CIT(A) dated 30/09/2019.…

Tax Authorities should Limit Additions to Gross Profit Rate in Bogus Purchase C…

The primary issue revolves around the addition of Rs. 1,25,62,972/- on account of alleged bogus purchases and commission, based on the findings of the Assessing Officer (AO) during the scrutiny assessment. After hearing both the parties, relying on …