Profiteering in construction services for failure to pass input tax credit resulted in repayment exceeding the commensurate benefit and closure of pro...
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
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4811 
Join Channel 
