Bogus Purchase Addition Deleted Where Documentary Evidence Supports Transactions

ACIT Vs Everest Food Products Pvt. Ltd. (ITAT Mumbai) ITAT Mumbai: Deletion of GP Addition on Alleged Bogus Purchases Upheld Where Purchases Substantiated by Documentary Evidence The Mumbai Bench of the Income Tax Appellate Tribunal upheld the order of the CIT(A) deleting an addition of ₹25.55 crore made by applying a gross profit rate of about 46% on alleged non-genuine purchases. The Tribunal held that mere non-filing or alleged irregular filing of income-tax returns by suppliers cannot, by itself, justify disallowance of purchase expenditure when the assessee has substantiated the transac...