https://www.taxtmi.com/caselaws?id=338037 Input tax credit cannot be reversed solely because the selling dealer failed to report corresponding sales in its returns. Where the Revenue identifies a discrepancy, the purchasing dealer must be confronted with it and given an opportunity to establish the genuineness of the transaction; adverse action is permissible only if the transaction is not satisfactorily proved. The Madras HC held that the reversal order was unsustainable and set it aside, while reserving liberty to the Revenue to redo the assessment after due opportunity and in accordance with law. en-us Thu, 12 Jan 2017 00:00:00 +0530 Tue, 24 Jan 2017 08:34:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=338037 Input tax credit cannot be reversed solely because the selling dealer failed to report corresponding sales in its returns. Where the Revenue identifies a discrepancy, the purchasing dealer must be confronted with it and given an opportunity to establish the genuineness of the transaction; adverse action is permissible only if the transaction is not satisfactorily proved. The Madras HC held that the reversal order was unsustainable and set it aside, while reserving liberty to the Revenue to redo the assessment after due opportunity and in accordance with law. Case-Laws VAT and Sales Tax Thu, 12 Jan 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=338037