CA in Practice
35867 Points
Joined June 2009
Do not support this view but there is a case law for tax audit on purchase.
Purchases will be treated as turnover
The Lordship Mrs.Sujata v. Manohar and D.P.Wadhwa J.J dismissed the special leave petition filed by the Department against the judgment dated 27/03/1996 of the Bombay High Court in ITA No. 924 of 1995, whereby the High Court rejected the reference application of the Department on the question whether the Tribunal was right in holding that the return filed by the assessee on 30th October, 1991, for the A.Y. 1991-92 was in time as it was under obligation to get its accounts audited in view of its purchases being in excess of Rs.40 lakhs and turnover connoted Sales or Purchases?[Chief CIT v. Vijay Maheshwari HUF C.C. No. 7819 of 1997 (228 ITR 157 (SC))].