Question And Answer
Querist: Manali
Answered by: Reply of the Expert is awaited;
Date: December 27, 2022
Query asked by Manali

Assessee is private limited co and engaged in business of manufacturing of spare parts of vehicles etc. Search U/Sec. 132 has conducted on the ground that assesssee has effected the purchases from the parties which are only providing accomodation bills and there GST numbers were cancelled subsequently due their involvement in issuing fake invoices. During the course of assessement proceedings assessee submits that it purchases are genuine and duly supported by all evidences such as invoice, material inwards note, payments by banking  channel, transport receipts. When the asssessee effected purchases the supplier GST number was valid and same was also later on.  Assessee also submitted that it had maintained quantity accounts of consumption of material and if is held that purchases are considered as non genuine the results of the assessee are absert.  Alternatively but without prejudice  it is submitted that entire purchases should not be disallowed but only profit element to the extent of 10% of such purchases be disallowed . However AO has not appreciated the submissions of assessee and assessed the income by disallowing the all purchases effected from the parties u/Sec. 69C and also took alternate stand that even if additions is not sustained U/Sec 69C, the addition is to be considered as inflated purchases and entire purchases should be considered as added U/Sec. 37 of the Act.

Whether action of AO is justified in law.

Pl guide .

File Uploaded: Not Available

Answer given by
Reply of the Expert is awaited. Please check back later

Disclaimer: This article is only for general information and is not intended to provide legal advice. Readers desiring legal advice should consult with an experienced professional to understand the current law and how it may apply to the facts of their case. Neither the author nor and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any inaccurate or incomplete information in this article nor for any actions taken in reliance thereon. No part of this document should be distributed or copied (except for personal, non-commercial use) without express written permission of

Leave a Reply

Your email address will not be published. Required fields are marked *