| Question And Answer | |
|---|---|
| Subject: | unverified purchases |
| Category: | Income-Tax |
| Querist: | BS |
| Answered by: | Law Intern |
| Tags: | Bogus Purchases, PCIT v. Kanak Impex (India) Ltd, unverified purchases |
| Date: | April 30, 2025 |
Does ratio of KANAN IMPEX [Bom H C ] apply to all unverified purchases cases ?
In PCIT v. Kanak Impex (India) Ltd, the Bombay High Court has held that the assessee failed to prove the genuineness of purchases and merely provided details of sundry debtors and creditors in the original assessment which did not absolve them from proving the purchases during reassessment. It was also held The Court held that section 69C is applicable, and the entire expenditure was to be disallowed and the CIT(A) and ITAT misdirected themselves by estimating profits instead of confirming the full addition.
The observations of the Court are very strong and it will be difficult to show that a case of unverified purchases is not caught within its ambit.
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