Income Tax : Effect of Info from Sales Tax Department on Income Tax Proceedings

Income Tax : Effect of Info from Sales Tax Department on Income Tax Proceedings

In case of PCIT v. Ramelex Pvt Ltd [2025] GCtR 1623 (Bombay), it was held that when the VAT assessment was pending adjudication, merely relying on the information of the Sales Tax Department without granting an opportunity to the Assessee to even cross examine the hawala purchasers to confirm the purchases from them violated the basic facts of law amenating to unfairness and breach of the principles of natural justice in making the addition of Rs.2,05,74,750/- as bogus purchases in hands of the Assessee.