Vicarious liability for dishonoured company cheques may extend to non-signatory directors where complaints contain foundational responsibility avermen...
Charitable registration turns on predominant purpose and genuine activities, while incidental fees and related-party rent require supporting adverse m...
MAT book-profit adjustments exclude disallowances for exempt-income expenditure and demerger expenditure unless expressly listed under the statutory c...
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.
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