Sale figure shown in books of accounts is not bogus Sale


Sale figure shown in books of accounts is not bogus Sale

1. In this reference made by the Income Tax Appellate Tribunal, on a reference application filed by the assessee before it, the solitary question which is referred for our consideration, reads as follows:

“Whether on the facts and in the circumstances of the case, the Tribunal was correct in holding that the onus was on the assessee to establish the source of receipt of the amounts aggregating Rs. 3 lakhs shown to have been received as sales proceeds from M/s Sandeep Wire Industries and in upholding its assessment as assessee’s income from the undisclosed sources?”

2. The only fact which needs to be taken note of to answer this question is that the assessee had, in the report filed by it, shown the sale of goods aggregating to Rs. 3 lacs to one M/s Sandeep Wire Industries and an amount of Rs. 3 lacs received against those sales. The Assessing Officer after making enquiries found that there was no such entity named M/s Sandeep Wire Industries and, therefore, did not accept the aforesaid transaction as ‘sale’. Instead, the amount of Rs. 3 lacs received in the books of account was treated as income from undisclosed sources and added to the income of the assessee. Assessee’s appeal before the CIT(A) as well as ITAT failed.

Below is the link to read further

Link

You May Also Refer:


Join Study Cafe Telegram Channel
Studycafe

This Account belongs to Admistrator of Studycafe.

0 Comments

Your email address will not be published.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