No ITC to purchasing dealer in the absence of proof of genuine transactions

Last updated: 11 November 2024

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The Supreme Court has ruled that businesses cannot claim Input Tax Credit (ITC) if the transactions are not genuine. The burden of proof lies with the purchasing dealer to demonstrate the authenticity of the purchase, not just by providing invoices or cheque payments. Without concrete evidence of actual goods movement and genuine dealings, ITC will be denied.

Court :
Supreme Court of India

Brief :
The Hon'ble Supreme Court in the case of The Additional Commissioner of Commercial Taxes v. M/s Shankara Infrastructure Materials Ltd. [arising out of SLP (Civil) No. 5504 of 2022 dated October 14, 2024] granted leave and allowed appeal, wherein M/s. Shankara Infrastructure Materials Ltd. ("the Respondent")was duly served notice, however, no appearance was made before the officer.

Citation :
Arising out of SLP (Civil) No. 5504 of 2022 dated October 14, 2024

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1 Year PLAN - Rs.~~1999~~

1799

(Excl. of GST ₹323)

2 Years PLAN - Rs.~~3499~~

3149

(Excl. of GST ₹566)

BEST VALUE

3 Years PLAN - Rs.~~4999~~

4499

(Excl. of GST ₹809)

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Attached File : 671907_5786_shankara_infrastructure_materials_ltd.pdf

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Judgement posted by

Bimal Jain

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FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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