While upholding an income tax addition, a division bench of the Delhi High Court has held that mere filing of the VAT Returns will not be sufficient to prove the genuineness of the purchase without conducting an inquiry by the income tax department. A re-assessment notice was issued against the assessee, M/S Mahalaxmi Dye India Pvt. Ltd alleging to have escaped assessment without considering that no accommodation entry was taken by the Petitioner.
Source Taxscan
