The accused denied bail over alleged GST credential misuse to commit Rs.1,09,11,404 fraud involving multiple proprietorships; investigation to continu...
ITAT allowed the appeal of the assessee, deleting the addition made by the AO on account of alleged excess purchases based on differences between VAT returns and books of account. ITAT held that, under the applicable VAT Rules, mandatory reversal of input tax credit on goods returned necessarily causes variations between VAT records and commercial books, without implying inflation of purchases. The assessee's supplier-wise reconciliation was found credible, and no material was brought by the AO to establish bogus or unverifiable purchases. With sales figures matching in both records and the variation being less than one percent of total purchases, ITAT found the disallowance by AO and its confirmation by CIT(A) unjustified.
ITAT allowed the appeal of the assessee, deleting the addition made by the AO on account of alleged excess purchases based on differences between VAT returns and books of account. ITAT held that, under the applicable VAT Rules, mandatory reversal of input tax credit on goods returned necessarily causes variations between VAT records and commercial books, without implying inflation of purchases. The assessee's supplier-wise reconciliation was found credible, and no material was brought by the AO to establish bogus or unverifiable purchases. With sales figures matching in both records and the variation being less than one percent of total purchases, ITAT found the disallowance by AO and its confirmation by CIT(A) unjustified.
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