18 March 2015
A Contractor/Developer of Building situated at Kolkata fully dominated under local Syndicate Supplier, was forced to purchase building material from the Local Mafia Syndicate. At the time of assessment departmental inspection was made, Inspector confirmed the transaction. But the Assessing Officer rejected the Sundry Creditors as bogus. What will the defence of any favorable case law?
19 March 2015
You should argue before the assessing officer in the following way: 1. The purchase was not bogus but the purchaser may be bogus. 2. If it is assumed but not admitted that the Purchases were not made at all then it is a question how the building was constructed and sold. 3. The asssessing officer maximum can add some amount on the ground of excess amount shown as purchases. 4. Comparable statement should be filed by plea that the assessee had reasonable amount of profit. 5. The assessing officer maxium can add the Net Profit ratio on the excess purchase. 6. The inspector report is important. 7. There are lot of case law in this respect.
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