TaxTMI 
TaxTMI 
bogus purchase
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....ogus purchase<br> Query (Issue) Started By: - vipul shah Dated:- 16-10-2010 Last Reply Date:- 24-10-2010 Income Tax<br>Got 2 Replies<br>Income Tax<br>judgemnt related to bogus purchase kindly give us some judgement on this issue Reply By GOPALJI AGRAWAL: The Reply: If the assessee admits bogus purchase, there is hardly any excuse. Yes, a possibility may be explored whether the bogus purchase has b....
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....een entered into stock register or the quantity purchased through bogus purchase has been sold? Reply By DEV KUMAR KOTHARI: The Reply: Please see reply in issue no. 1565 There may be many factors which have contributed for getting the case 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 mu....
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....st 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. Date of submission: - 23-10-2009 By: - Rama Krishana Case is alredy decided and ar appeal stage Case law citation :16DTR278 , CIT V\S SINUJA FOODS LIMITED required Date of....
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.... submission: - 24-10-2009 By: - GYAN JAIN 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 order, purchase memo= bill , cash memo, challn etc. CNote etc. as delivery evidence as may be applicable, delivery received- entry in G....
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....R 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 available, may not co=operate, that does not mean that goods were not purchased. It is function of the revenue authorites to catch h....
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....old 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. Those factors will not make a real purchase as a bogus purchase. Date of submission: - 28-10-2009 By: - DEV KUMAR KOTHARI- View Profile....
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