Fraudulent trading requires cogent evidence of intent to defraud; ordinary-course payments protected, except post-insolvency withdrawals must be resto...
Religious purpose exclusion versus charitable purpose: non overriding religious objects do not attract Explanation 3, registration directed under sect...
Search-assessment proviso jurisdiction, time-barred valuation reports, and denial of cross-examination vitiate valuation-based and confession-based ad...
Whether purchases were bogus and income could be estimated: The Tribunal found that purchase and sale transactions occurred under excise supervision, permits supported sales, detailed procurement and production records were maintained, and AO relied only on loose papers/Tally from an ex-employee without confronting suppliers or independent corroboration; legal basis-additions cannot rest on presumption/conjecture and on uncorroborated third-party material. Outcome: additions for alleged bogus purchases deleted. Whether unexplained expenditure u/s 69C and witness evidence sustained: absence of opportunity to cross-examine and reliance on tamperable third-party data meant additions were invalid; outcome: deleted. Whether gross-profit addition from a dubious trial balance: TB was unreliable/dumb document; outcome: deletion. - ITAT
Whether purchases were bogus and income could be estimated: The Tribunal found that purchase and sale transactions occurred under excise supervision, permits supported sales, detailed procurement and production records were maintained, and AO relied only on loose papers/Tally from an ex-employee without confronting suppliers or independent corroboration; legal basis-additions cannot rest on presumption/conjecture and on uncorroborated third-party material. Outcome: additions for alleged bogus purchases deleted. Whether unexplained expenditure u/s 69C and witness evidence sustained: absence of opportunity to cross-examine and reliance on tamperable third-party data meant additions were invalid; outcome: deleted. Whether gross-profit addition from a dubious trial balance: TB was unreliable/dumb document; outcome: deletion. - ITAT
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