TaxTMI 
TaxTMI 
Bogus Sales
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....ogus Sales<br> Query (Issue) Started By: - Alpa Shah Dated:- 26-1-2025 Last Reply Date:- 2-2-2025 Income Tax<br>Got 8 Replies<br>Income Tax<br>'A' has shown sales and received the amount through banking channel in the same year and has disclosed the said transactions in the books of accounts. Lateron the purchaser has accepted before the department that he is engaged in the business of che....
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....que discount and also issue cheques to other party if require. LAO assessed the receipt of said amount u/s 68 of the Act. Reply By KASTURI SETHI: The Reply: What is query ? Reply By Alpa Shah: The Reply: Whether LAO resort to addition of the alleged amount u/s 68 of the Act ? Reply By KALLESHAMURTHY MURTHY: The Reply: Dear Sir, As per the query, "A" has indulged in 'bill trad....
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....ing' where there was no physical movement of goods intended to avail ITC fraudulently. The case is fit to take up u/s 74 and not occasioned for Sec.68, since not intercepted in the movement. No requirement to make additions but to reverse the ITC with other consequential proceedings. [This is my view on the query.] Reply By Padmanathan KV: The Reply: Kalleshamurthy Sir, The question is wit....
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....h regard to Income Tax and not GST. Sec 68 of Income Tax Act provide for unexplained cash credits. Reply By Padmanathan KV: The Reply: Has "A" actually sold the goods? ie., is there any evidence for the movement of goods? such as e-way bill, lorry receipt, loading/unloading payments, toll plaza receipts, weigh bridge receipt and so on? Has "A" declared the sales in his GST re....
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....turns and paid GST on it? Reply By KALLESHAMURTHY MURTHY: The Reply: SSri Padmanathan KV Ji. Sir, I agree with you, Sir. I misunderstood the query related to income tax but also involved a bogus transaction. Thanks enough to you for pointing out my mistake. . Reply By Alpa Shah: The Reply: 'A' has declared the sales in his GST returns and paid GST on it. 'A' is engaged in....
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.... the business of trading of diamonds hence e-way bill, lorry receipt, loading / unloading payments, toll plaza receipts, weigh bridge receipt, etc. is not applicable. Reply By KALLESHAMURTHY MURTHY: The Reply: Dar Sir, Then how it was decided as a bogus transaction. Whether the tax was paid through cash or ITC. If paid through ITC it may be accumulated through bogus credit.<br> Discussion Forum....
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