{"id":37661,"date":"2023-10-07T11:40:35","date_gmt":"2023-10-07T06:10:35","guid":{"rendered":"https:\/\/itatonline.org\/digest\/?post_type=qa&#038;p=37661"},"modified":"2023-10-12T15:10:32","modified_gmt":"2023-10-12T09:40:32","slug":"bogus-purchases-u-sec-37-of-the-act","status":"publish","type":"qa","link":"https:\/\/itatonline.org\/digest\/qa\/bogus-purchases-u-sec-37-of-the-act\/","title":{"rendered":"Bogus Purchases U\/Sec. 37 of the Act."},"content":{"rendered":"<p>Assessee is trader of the steel and also registered under the GSt. Books of accounts are audited U\/SEc. 44AB of the Act. In the assessment proceedings for A.Y. 2021-22, A.O. has asked the details of the purchases and on the basis of those details he has sent the Notices U\/SEc. 133(6) to various parties. Two parties have not responded to the Notice U\/SEc. 133(6) of the Act.\u00a0 AO has issued the SCN to assessee as to why the purchases of these parties should not be disallowed U\/SEc. 37 of the Act since they have not responded to Notice U\/SEc 133(6) and form data available with the department they are non filer of Income Tax Return.<\/p>\n<p>Assessee has submitted the detailed reply along with the copy of Bill, copy of E way Bill, Delivery Challan, Bank statement indicating the payments are through Banking channel, details of quantitative record, details of sales effected against the goods purchase from these parties .<\/p>\n<p>However the AO disallowed 100% purchases from these parties\u00a0 \u00a0U\/SEc. 37 of the Act since they have not responded to Notice U\/SEc 133(6) and form data available with the department they are non filer of Income Tax Return.<\/p>\n<p>whether the action of the AO is correct ?<\/p>\n<p>what are the remedies available to assessee. pl guide<\/p>\n","protected":false},"comment_status":"open","ping_status":"closed","template":"","qa_expert":[22],"qa_category":[23],"qa_tag":[1067,543,77],"class_list":["post-37661","qa","type-qa","status-publish","hentry","qa_expert-advocate-neelam-jadhav","qa_category-income-tax","qa_tag-alleged-bogus-purchases","qa_tag-bogus-purchases","qa_tag-disallowance"],"acf":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa\/37661","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/qa"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=37661"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=37661"}],"wp:term":[{"taxonomy":"qa_expert","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_expert?post=37661"},{"taxonomy":"qa_category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_category?post=37661"},{"taxonomy":"qa_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_tag?post=37661"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}