Bogus Purchase Addition Deleted for Lack of Independent Enquiry

M. Shashikant & Co Vs ITO (ITAT Mumbai) Paper Trail, Stock Tally and Exports Trump Suspicion: ITAT Deletes Bogus Purchase Addition in Diamond Trade The Mumbai Bench of the Income Tax Appellate Tribunal allowed the assessee’s appeal and deleted the addition of ₹59.11 lakh made on account of alleged bogus purchases, holding that mere third-party information cannot override cogent documentary evidence and quantitative reconciliation. The assessee, engaged in trading and export of cut and polished diamonds, had reopened assessment based on Investigation Wing inputs relating to alleged acco...