Failure to establish delivery of goods is sufficient cause to declare the supply as bogus

Last updated: 27 May 2021
Quick Summary
This Income Tax Appellate Tribunal ruling clarifies that if an assessee cannot establish the actual delivery of goods, purchases can be deemed bogus. Despite the assessee providing purchase documents and making payments via banking channels, the failure to prove delivery was a critical factor. The Tribunal upheld the estimation of profit on these transactions, concurring with the lower appellate authority's decision.

Court :
ITAT Mumbai

Brief :
Aforesaid appeal by revenue for Assessment year [AY in short] 2011-12 contest the order of Ld. Commissioner of Income Tax (Appeals)-24, Mumbai [in short CIT(A) ] which has provided certain relief to the assessee on account of alleged bogus purchases.

Citation :
I.T.A. No.7287/Mum/2019

Daily Limit Reached

You have reached your daily limit of 2 Free Judgements

Subscribe to CCI PRO for unlimited access

Why Upgrade to CCI PRO?
  • No Ads
  • WhatsApp Community
  • Daily E-Newsletter
  • Unlimited Judgements Access
  • Profile Visitors
  • Link Social Profiles
  • Featured Job Posts
  • Pro Badge
  • Expert GST Guidance
  • Unlimited Forum Replies
  • Download Content in PDF
BEST VALUE
2 YEAR PLAN
3,499
(Excl. of GST ₹629)
1 YEAR PLAN
1,999
(Excl. of GST ₹359)

3 MONTHS PLAN
999
(Excl of GST ₹179)
View all CCI PRO benfits

Already a PRO member? Login here for an ad-free experience.

 

Guest
Published in Income Tax
Views : 138
Share Report Abuse
Comments


Recent Judgments :

  1. Partners of a Partnership Firm are personally liable for GST dues of the Firm and bank account of an erstwhile partner can be attached for recovery
  2. Prima facie satisfaction and not conclusive proof of fraud is sufficient to invoke Section 74 of the CGST Act
  3. Show Cause Notice issued to a non-existent amalgamated company is void ab initio and cannot be saved by Section 87 of the CGST Act
  4. SC Landmark Ruling: Mechanical Invocation of Fraud Cannot Extend Limitation under Section 74 of the CGST Act
  5. CESTAT Sets Aside ₹60 Crore Service Tax Demand: Best-Judgment Assessment Cannot Be Based on Guesswork
  6. CESTAT: Excess Service Tax Paid by Mistake Is a Deposit — Refund Not Barred by Section 11B Limitation
  7. CESTAT Denies Service Tax Exemption on Rent to Educational Institution for Lack of Evidence
  8. CESTAT Upholds Customs Duty Demand on Undervaluation of Imported Goods Based on Chinese Customs Documents
  9. IGST Paid Under a Wrong Head to be Adjusted Against CGST/SGST Liability Before Any Recovery of Tax Interest or Penalty
  10. Assessee entitled to fresh opportunity of hearing where adjudicating authority ignored reply filed to DRC-01A intimation

View More Judgments »


Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Pro Member Nitin ShrotriNitin ShrotriPro Member sumitsumitPro Member Aishwarya NAishwarya NPro Member Vivekanand SagarVivekanand SagarPro Member jaspreet sidanajaspreet sidana
Subscribe to Pro
Join an elite circle of professionals

Browse by Category