Appeal allowed; impugned order quashed as regulator failed to prove nexus or manipulative scheme; sale genuine - s.12A(a)-(c), Regs 3(a)-(d),4(1),4(2)...
Appellant's ring-back tone service held OIDAR, taxable domestically for 01.07.2012-31.07.2016; liability confirmed, penalties vacated, remanded for re...
ITAT dismissed Revenue's appeal and upheld the order of CIT(A) in toto. The Tribunal affirmed deletion of addition u/s 68 r/w s.115BBE on alleged unexplained sundry creditors, holding that only opening balances were involved and no fresh credit arose in the relevant previous year. Disallowance of GST expenditure was sustained as allowable business outgo, the liability having crystallized during the year when input tax credit had lapsed. On alleged bogus purchases, ITAT endorsed CIT(A)'s restriction of addition to a nominal gross profit rate, as books were audited, not rejected, and sales and stock records were accepted. Deletion of addition on alleged difference in purchases was also confirmed, the AO having miscompared net and gross figures.
ITAT dismissed Revenue's appeal and upheld the order of CIT(A) in toto. The Tribunal affirmed deletion of addition u/s 68 r/w s.115BBE on alleged unexplained sundry creditors, holding that only opening balances were involved and no fresh credit arose in the relevant previous year. Disallowance of GST expenditure was sustained as allowable business outgo, the liability having crystallized during the year when input tax credit had lapsed. On alleged bogus purchases, ITAT endorsed CIT(A)'s restriction of addition to a nominal gross profit rate, as books were audited, not rejected, and sales and stock records were accepted. Deletion of addition on alleged difference in purchases was also confirmed, the AO having miscompared net and gross figures.
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