Where papers were seized from custody of appellant and affidavits filed were neither based on any record nor corroborated with cogent evidence

IT: Assessee inflated expenditure by showing higher purchase price through fictitious invoices in name of 33 fictitious parties, Tribunal was justified in disallowing 25 per cent of purchase price
IT: Where papers were seized from custody of appellant and affidavits filed were neither based on any record nor corroborated with cogent evidence, levy of penalty was just
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[2015] 58 taxmann.com 44 (Gujarat)
HIGH COURT OF GUJARAT
Vijay Proteins Ltd.
v.
Commissioner of Income-tax*
K.S. JHAVERI AND K.J. THAKER, JJ.
IT REFERENCE NO. 139 OF 1996†
TAX APPEAL NO. 243 OF 2002
DECEMBER  9, 2014
I. Section 37(1), read with sections 40A(3) and 145, of the Income-tax Act, 1961 - Business disallowance - Allowability of (Bogus purchase) - Goods, being oil cakes, were not received from those parties who were shown in books - However, such goods were in fact received from a different source which was exclusively known to assessee only - It was also evident that assessee inflated expenditure by showing higher purchase price through fictitious invoices in name of 33 fictitious parties - Whether Tribunal was justified in disallowing 25 per cent of purchase price - Held, yes [Para 16] [In favour or revenue]

II. Section 271(1)(c), read with section 132, of the Income-tax Act, 1961 - Penalty - For concealment of income (Explanation 5) - Whether where papers were seized from custody of appellant and affidavits filed were neither based on any record nor corroborated with cogent evidence, levy of penalty was just - Held, yes [Para 18] [In favour or revenue]