Rs. 4.55 Crore Addition Invalid as Bogus Purchases Were Recorded in Books: ITAT Delhi

KDP Infrastructure Private Limited Vs DCIT (ITAT Delhi) Bogus purchases can’t be taxed u/s 69 without rejecting books: ITAT Delhi deletes ₹4.55 cr addition Delhi Tribunal allowed the assessee’s appeal and deleted the addition of ₹4.55 crore made u/s 69 on account of alleged bogus purchases. The Tribunal held that where purchases are duly recorded in the books of account and payments are made through banking channels, the same cannot be treated as unexplained “investments” u/s 69 unless the books are first rejected or there is material to show unrecorded investments. It was noted t...