S. 68: Purchases cannot be treated as "bogus" only on the ground that the suppliers are not traceable
The Tribunal has found that the purchases are genuine because they are supported by bills, entries in the books of account, payment by cheque and quantitative details. The AO did not find any inflation in purchase price or inflation in consumption or suppression the production. The addition had been made only on the ground that the parties are not traceable. The assessee had made payment through crossed cheques and AO did not find that payment made came back to assessee. The ratio of creditors to purchases is normal considering the past records of the assessee. The creditors were outstanding owing to liquidity as assessee is also required to get credit in respect of sales also. Even otherwise, section 68 is not attracted to amounts representing purchases made on credit. This is a finding of fact which does not give rise to a question of law. S. 68: Fact that alleged supplier is not traceable and has been termed a "hawala dealer" by the VAT authorities is not sufficient to treat the purchases as "bogus"
The fact that the supplier is declared as a "Hawala dealer" by the VAT department is a good starting point for making further investigation and taking it to its logical end. However, suspicion of highest degree cannot take place of evidence. The AO ought to have called for details of the bank accounts of the suppliers to find out as whether there was any immediate cash withdrawal from their account. No such exercise was done. There is nothing in the order of the AO about the cash trail. Transportation of good to the site is one of the deciding factor to be considered for resolving the issue. Proof of movement of goods is not in doubt. In the absence of sufficient evidence, the purchases cannot be treated as bogus Read more of this post
Books one must have ........I am not salesman of Federation.....................
October 24th, 2010
Hon'ble Mr. Justice Anil R. Dave, Judge, Supreme Court of India has released the publication on 3rd July, 2010 in a National Tax Conference at Hyderabad published by All India Federation of Tax Practitioners titled "151 Frequently Asked Questions on Survey – Direct Taxes".
This publication is an unique publication in a questions answers format explaining the provisions and various controversies relating to Survey under Direct Taxes. In this publication 151 questions of practical importance are answered in a simple and lucid language. It is divided into 20 Chapters. It deals with all important issues relating to Survey, such as TDS Survery, Powers of Survey officials, recording of statements during survey, penalties, prosecution, duties of assessees, precautions to be taken while giving statement in the course of survey, advantages of filing a settlement application, practical issues, Direct Tax Code provisions, important case laws, circulars, notifications, accounting aspects, Sales Tax, VAT and Central Excise, etc.
This publication will be a useful guide to tax payers, tax consultants, as well as tax department.
This publication is authored by Mr. M. V. Purushottama Rao, Chartered Accountant from Hyderabad and is edited by Mr. N. M. Ranka, Sr. Advocate, Dr. K. Shivaram, Advocate, Mr. S. R. Wadhwa, Advocate Settlement Commission and Mr. Kishor B. Karia, Chartered Accountant.
The price of publication is Rs. 200/-. For subscribers of itatonline.org, the price is Rs. 160/-. Outstation members are requested to add Rs. 40/- per publication as courier charges. Please make all drafts payable to "All India Federation of Tax Practitioners".
For further details please contact:
ALL INDIA FEDERATION OF TAX PRACTITIONERS
215, Rewa Chambers, 31, New Marine Lines, Mumbai – 400 020
Tel.: 2200 6342 Telefax: 2200 6343 E-mail: aiftp@vsnl.com
ALL INDIA FEDERATION OF TAX PRACTITIONERS
215, Rewa Chambers, 31, New Marine Lines, Mumbai – 400 020
Tel.: 2200 6342 Telefax: 2200 6343 E-mail: aiftp@vsnl.com
AIFTP is pleased to announce the release of the publication titled "Wills & Bequests – Strategies – 151 Questions & Answers with 6 Specimens". Hon'ble Mr. Justice Anil R. Dave, Judge, Supreme Court of India released the publication on 8th January, 2011 at Ahmedabad in a National Tax Conference organized by the AIFTP (Western Zone) in association with All Gujarat Federation of Tax Consultants and other local associations.
This publication is an unique publication in a questions answers format explaining the provisions and various controversies relating to Wills & Bequests. In this publication 151 questions of practical importance are answered in a simple and lucid language. It is divided into 6 Chapters alongwith 6 specimens. The highlights of the said publication are Advantages of making Will, Caveat, Charitable Trust, Codicil, Discretionery Will, FEMA, Foreign Properties, Formalities for making valid Will, HUF – Will, Joint Will, Law which should be considered while preparing Will, Non-resident, Probate and Succession Certificate, Registration, Taxation, Trust through Will, What Will should contain, etc.
This publication will be a useful guide to tax payers, tax consultants, as well as tax department.
This publication is authored by S/Shri N. M. Ranka, Sr. Advocate, Jaipur, K. H. Kaji, Advocate, Ahmedabad, Bharat R. Damodar, Advocate & Solicitor, Mumbai, Pradip Kapasi, Chartered Accountant, Mumbai and Dr. K. Shivaram, Advocate, Mumbai.
The price of publication is Rs. 200/-. For members of the Federation, the same is available at a price of Rs. 160/-. Outstation members are requested to add Rs. 50/- per publication as courier charges. Please make all drafts payable to "All India Federation of Tax Practitioners".
For further details please contact:
ALL INDIA FEDERATION OF TAX PRACTITIONERS
215, Rewa Chambers, 31, New Marine Lines, Mumbai – 400 020
Tel.: 2200 6342 Telefax: 2200 6343 E-mail: aiftp@vsnl.com
ALL INDIA FEDERATION OF TAX PRACTITIONERS
215, Rewa Chambers, 31, New Marine Lines, Mumbai – 400 020
Tel.: 2200 6342 Telefax: 2200 6343 E-mail: aiftp@vsnl.com
December 24th, 2014
As Chartered Accountants and/or Advocates, we are expected to be aware of the fundamentals of FEMA, Non-resident taxation, Limited Liability Partnerships (LLPs) and Allied laws. Not being so aware can result in severe embarrassment and cause loss of confidence amongst clients in our professional abilities.
This is where AIFTP's latest publication "Basic questions and answer on Foreign Exchange Management Act – Non-Resident Taxation – Limited Liability Partnership – Allied Laws – Report of Foreign Bank and Financial Accounts" comes to our rescue. The publication is edited by eminent professionals, Shri. Dilip J. Thakkar, Chartered Accountant &Dr. K. Shivaram, Senior Advocate. Between them, the two stalwarts have decades of experience on the problems businessmen face when setting up operations in India.
Under the tutelage of these eminent senior professionals, a group of young professionals consisting of Sujeet S. Karkala, Rahul K. Hakhani, Rahul R. Sarda and Dilli R. Bhatta, Advocates, have authored the publication.
The USP of the book is that it follows a Question-and-Answer (Q&A) format. Almost every conceivable question that one can have on the specified subjects is answered in a straight-forward manner and with utmost clarity.
For example, the Chapter dealing with Non-Resident taxation covers all the topics that a non-resident taxpayer will need to know to compute his precise tax liability in India.
Similarly, the Chapter on Limited Liability Partnerships (LLPs) covers all issues from the setting up, to the winding up, of a LLP, and the tax implications thereon.
The publication is a must-have for all professionals.
The price of publication is Rs. 250/-.
For members of the Federation and subscribers of www.itatonline.org, the same is available at a price of Rs. 200/- and for others, the same is for Rs. 225/-. Local/Outstation members not collecting from office are requested to add Rs. 60/- per publication as courier charges.
Please make all drafts payable to "All India Federation of Tax Practitioners".
For further details please contact:
ALL INDIA FEDERATION OF TAX PRACTITIONERS, 215, Rewa Chambers, 31, New Marine Lines, Mumbai – 400020. Tel.: 2200 6342 Telefax: 2200 6343 E-mail: aiftp@vsnl.com
ALL INDIA FEDERATION OF TAX PRACTITIONERS, 215, Rewa Chambers, 31, New Marine Lines, Mumbai – 400020. Tel.: 2200 6342 Telefax: 2200 6343 E-mail: aiftp@vsnl.com
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