|COURT:||Rajasthan High Court|
|CORAM:||K. S. Jhaveri J, Vijay Kumar Vyas J|
|CATCH WORDS:||Bogus purchases, Bogus Sales|
|COUNSEL:||Aditya Bohra, Gunjan Pathak|
|DATE:||May 10, 2017 (Date of pronouncement)|
|DATE:||May 25, 2017 (Date of publication)|
|FILE:||Click here to download the file in pdf format|
|Bogus purchases: In view of the Supreme Court’s order in Vijay Proteins Ltd vs. CIT whereby the verdicts of the Gujarat High Court in Sanjay Oilcake Industries vs. CIT 316 ITR 274 (Guj) and N.K. Industries Ltd vs. Dy. CIT were confirmed, the AO has to accept the law and verify whether the transaction is genuine or not on the basis of the aforesaid three judgments|
The High Court had to consider whether the Tribunal was justified in deleting the addition made by the AO with regard to bogus purchases allegedly made by the assessee. HELD by the High Court allowing the appeal:
(i) Considering the law declared by the Supreme Court in the case of Vijay Proteins Ltd. Vs. Commissioner of Income Tax, Special Leave to Appeal decided on 06.04.2015 whereby the Supreme Court has dismissed the SLP and confirmed the order dated 09.12.2014 passed by the Gujarat High Court and other decisions of the High Court of Gujarat in the case of Sanjay Oilcake Industries Vs. Commissioner of Income Tax (2009) 316 ITR 274 (Guj) and N.K. Industries Ltd. Vs. Dy. C.I.T., Tax Appeal No.240/2003 decided on 20.06.2016, the parties are bound by the principle of law pronounced in the aforesaid three judgments.
(ii) We remit back the case to the Assessing Officer for deciding afresh on the factual matrix. The authority will accept the law but the transaction whether it is genuine or not will be verified by the Assessing Officer on the basis of the aforesaid three judgments. The issues are answered accordingly. The appeal is accordingly disposed of.