“Section 44(6)”
The decision most relied on for Section 44(6) is Vijay Proteins Ltd. v. CIT (58 Taxmann.com 44), cited in 140 judgments on BharatTax.
Leading authorities on Section 44(6)
When an assessee makes alleged bogus or hawala purchases but subsequently makes genuine sales from those purchases, the addition to income should be restricted only to the estimated profit embedded in such transactions, not the entire purchase value.
Foreign exchange fluctuation gains or losses are operational in nature and must be included in the computation of the operating margin for both the assessee and comparable companies when determining the Arm's Length Price.
An addition under section 68 cannot be sustained if the assessee has produced documents like PAN, confirmation, and bank statements to establish the identity, creditworthiness, and genuineness of a loan creditor.
