TaxTMI 
TaxTMI 
Unverifiable purchases
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....nverifiable purchases<br> Query (Issue) Started By: - GYAN JAIN Dated:- 9-11-2009 Last Reply Date:- 16-11-2009 Income Tax<br>Got 2 Replies<br>Income Tax<br>THE AO ISSUED NOTICE U\S 131 TO THE PURCHSER....
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....ERS AND SOME NOTICE RETRUN BACK AS MARK NOT FOUND OR ADDRESS IS NOT CORRECT , WHETHER THE AO CAN DEEMED SUCH PURCHASESAS UNVERIFIABLE PURCHASES , WHILE CONFIRMATIONS FROM ALL THE PURSHASERERES ARE SUB....
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....MITTED BY THE ASSESSEE TO AO . ADVISE ME Reply By DEV KUMAR KOTHARI: The Reply: I think the AO issued notices to Suppliers of assessee and not to purchasers- there seems a mistake in your query. Bes....
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....ides confirmation of purcahses from suppliers you need to establish that goods were received, accounted for and used/ sold or held as closing stock to establish that the purchases are genuine. In case....
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.... of manufacturing activity consumption of material should be normal and not excessive. If excessive consumption is shown or excessive wastage is shown, without valid reason, then there can be doubt of....
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.... bogus purchases. Reply By Mukesh Kumar: The Reply: It is matter of evidence and proof. Why the letters return back as Mark not found or address not correct. One case or two case may be exceptional b....
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....ut each case! unbelievable. It means, there is something which is doubtful. All depend upon that how you are able to prove the genuineness and reasons to prove your transactions.<br> Discussion Forum ....
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