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

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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

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1 Year PLAN
1999
(Excl. of GST ₹359)

2 Years PLAN
3499
(Excl. of GST ₹629)

BEST VALUE
3 Years PLAN
4999
(Excl. of GST ₹899)

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