Reversal of input tax credit in proportion to exempt supply: specificity of show-cause notice required; order set aside, fresh proceedings allowed wit...
Benami transaction and beneficial ownership: documentary and circumstantial evidence show payors were true beneficiaries, resulting in PBPTA consequen...
Treatment of a negative cash balance as income from unexplained sources was upheld because the taxpayer failed to prove that alleged cash gifts had a verifiable donor source. The court applied the principle that cash gifts require independent evidence of the donor's capacity and source of funds; self signed receipts and a post hoc declaration were insufficient. Inconsistent statements about the donor and absence of the donor's tax filings or other corroboration undermined credibility, leading to rejection of the gift claim and endorsement of the unexplained cash balance being taxed as income.
Treatment of a negative cash balance as income from unexplained sources was upheld because the taxpayer failed to prove that alleged cash gifts had a verifiable donor source. The court applied the principle that cash gifts require independent evidence of the donor's capacity and source of funds; self signed receipts and a post hoc declaration were insufficient. Inconsistent statements about the donor and absence of the donor's tax filings or other corroboration undermined credibility, leading to rejection of the gift claim and endorsement of the unexplained cash balance being taxed as income.
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