Profiteering in construction services for failure to pass input tax credit resulted in repayment exceeding the commensurate benefit and closure of pro...
Estimation of profit element in non-genuine purchases: the Tribunal held that the CIT(A) mechanically followed an earlier ITAT direction limiting disallowance without independently verifying factual parity between years or the effect of later binding precedents, and that subsequent authority criticises fixed-rate profit estimates where the assessee fails to prove genuineness. The impugned restriction was set aside and the matter remitted to the CIT(A) to re-adjudicate after affording the assessee a hearing, to apply relevant binding precedents and record a reasoned finding. The Revenue's appeal was allowed for statistical purposes and remand ordered.
Estimation of profit element in non-genuine purchases: the Tribunal held that the CIT(A) mechanically followed an earlier ITAT direction limiting disallowance without independently verifying factual parity between years or the effect of later binding precedents, and that subsequent authority criticises fixed-rate profit estimates where the assessee fails to prove genuineness. The impugned restriction was set aside and the matter remitted to the CIT(A) to re-adjudicate after affording the assessee a hearing, to apply relevant binding precedents and record a reasoned finding. The Revenue's appeal was allowed for statistical purposes and remand ordered.
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