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November 2024

Section 68: Bogus Purchase — the onus of bringing the purchases by the Assessee under the cloud was on the Revenue.

By Ajay R. Singh, Advocate
Reading Time 6 mins

17. Ashok Kumar Rungta vs. Pr. Income Tax Officer 24(1)(1) &Ors.

ITXA No. 1753, 1759 & 2780 of 2028

Dated: 15th October, 2024 (Bom) (HC)

Income Tax Appellate Tribunal order dated 9th August, 2017

Assessment Years 2009–10 to 2011–12

Section 68: Bogus Purchase — the onus of bringing the purchases by the Assessee under the cloud was on the Revenue.

Originally, the Assessing Officer had passed an order dated 21st March, 2014 (“AO Order”) on reassessment of returns for three Assessment Years, disallowing all the expenses incurred towards purchase from certain entities, and thereby adding such expenses to the income of the Appellant-Assessee. The CIT(A) restricted the disallowance @ 10 per cent of certain suspect purchases on the premise that they are bogus purchases. The ITAT upheld the findings o

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