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Assistant Commissioner Of Income Tax, ... vs M/S. Prathibha Jewellery House, ... on 26 June, 2020

9.1 The applicant had further stated that the sales made by him are genuine sales, the payments in respect of the sales had been received via banking channels and has been duly recorded in the books of the appellant. He has also stated that the appellant has paid VAT on the sales which was 20% of the sales and submitted VAT returns reconciling the same with the sales. The appellant has also submitted various case laws in his support stating that the sales cannot be treated as bogus unless the purchases or stocks shown by him are found to be un-explained. The Assessing Officer did not point out any mistake in the purchases or in the inventory or in the VAT return filed by the appellant 4 I.T.A. No. 1548/Del/2022 and therefore, the sale shown by him in the P&L account should not have been treated as bogus sales. I am of the opinion that the sales cannot be added under section 68 unless they are proved as bogus on the basis of some reliable evidence. The reliance is placed on the decision of Hon'ble Delhi High Court of Delhi in ITA 613/2010 in the matter of CIT v/s Kailash Jewellery House.
Income Tax Appellate Tribunal - Bangalore Cites 4 - Cited by 11 - Full Document
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