TaxTMI 
TaxTMI 
Case laws - bogus purchases
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....ase laws - bogus purchases<br> Query (Issue) Started By: - GYAN JAIN Dated:- 23-10-2009 Last Reply Date:- 28-10-2009 Income Tax<br>Got 3 Replies<br>Income Tax<br>Case laws on bogus purchases in favour of assessee Case law: 16 DTR 278 CIT V/s SINUJA FOODS P LTD (2008 (10) TMI 61 - HIGH COURT RAJASTHAN) Reply By Rama Krishana: The Reply: There may be many factors which have contributed for getting ....
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....the cas in favor of assessee. As you have described in your query it is case of bogus purchase. I like to suggest that you, if the case is at assessment stage, you must focus on facts of the case instead of reference to any case laws. Once you put a case law before AO, he may take the note the that case and may make the observattions more stronger after removing the weakness in the case. Reply By ....
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....GYAN JAIN: The Reply: Case is alredy decided and ar appeal stage Case law citation :16DTR278 , CIT V\S SINUJA FOODS LIMITED required Reply By DEV KUMAR KOTHARI: The Reply: Bogus purchases are definately disallowable. However, there is difference in bogus and suspected purchases. If it is a case of suspecion in mind of authoriteis, you must clear their suspecion by giving evidence - purchase ord....
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....er, purchase memo= bill , cash memo, challn etc. CNote etc. as delivery evidence as may be applicable, delivery received- entry in GR register and /or stock register, consumption or sale of goods suspected, revenue therefrom credited in P & l a/c ec. External and third party evidences like transporters note, insurance policy cover, etc. ill be highly useful. A party who supplied goods, may not be ....
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....available, may not co=operate, that does not mean that goods were not purchased. It is function of the revenue authorites to catch hold of such parties and not to penalise the party who is availabel for harrassment in course of assessment or appeal etc. If purcahse is establsihed, it cannot be bogus. The supplier may be a fly-by- night party or a person who has changed business, location etc. Thos....
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....e factors will not make a real purchase as a bogus purchase.<br> Discussion Forum - Knowledge Sharing ....