Specified regulatory authority income receives conditional tax exemption, subject to non-commercial activity, unchanged income character, and return f...
Tax exemption for regulatory authority income applies retrospectively, subject to non-commercial activity, unchanged income sources, and return-filing...
Input tax credit conditions remain constitutionally valid, with eligible recipient claims considered under GST circulars and retrospective filing dead...
Bogus donation receipts justified commission income assessment and defeated political-party tax exemption for inaccurate accounts and reporting failur...
Pure reimbursement without income element escapes tax withholding, while delayed withholding and unsupported provisions face deferred or renewed scrut...
Public benefit requirement defeats charitable registration where residents' association services are reciprocal, member-only facilities governed by mu...
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, adhering to lawful norms and principles. If transactions are found bogus, they must be discarded by making appropriate permissible additions. The CIT(A) erred in reducing the gross profit returned by the assessee from 12% to 4.74%, as it had no bearing on purchases made by procuring bills to save VAT. The revenue's appeal was allowed, directing the AO to assess income from such transactions at 12.5% in each assessment year on the purchases made. The assessee accepted this finding as beneficial. If authorities view purchases as questionable or bogus, they must undertake necessary inquiries, including procuring information from other departments, to ascertain correct facts and bring such transactions to tax to prevent tax evasion and ensure real income is taxed.
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, adhering to lawful norms and principles. If transactions are found bogus, they must be discarded by making appropriate permissible additions. The CIT(A) erred in reducing the gross profit returned by the assessee from 12% to 4.74%, as it had no bearing on purchases made by procuring bills to save VAT. The revenue's appeal was allowed, directing the AO to assess income from such transactions at 12.5% in each assessment year on the purchases made. The assessee accepted this finding as beneficial. If authorities view purchases as questionable or bogus, they must undertake necessary inquiries, including procuring information from other departments, to ascertain correct facts and bring such transactions to tax to prevent tax evasion and ensure real income is taxed.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 4801
Join Channel
TaxTMI 
