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...
Bogus purchases and estimation of income were examined where the CIT(A) had directed the AO to add only the gross profit element in respect of purchases from four alleged suppliers. The tribunal found the assessee's construction activity undisputed and concluded purchases were actually from other parties yielding profits higher than the disclosed GP rate, so the CIT(A)'s restriction was incorrect. Applying jurisdictional High Court precedent that taxes only the profit margin in bogus purchases, the ITAT restricted the addition for the four non existent parties to 5% above the assessee's disclosed GP rate and partly allowed the revenue appeal.
Bogus purchases and estimation of income were examined where the CIT(A) had directed the AO to add only the gross profit element in respect of purchases from four alleged suppliers. The tribunal found the assessee's construction activity undisputed and concluded purchases were actually from other parties yielding profits higher than the disclosed GP rate, so the CIT(A)'s restriction was incorrect. Applying jurisdictional High Court precedent that taxes only the profit margin in bogus purchases, the ITAT restricted the addition for the four non existent parties to 5% above the assessee's disclosed GP rate and partly allowed the revenue appeal.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4816 
Join Channel 
