ITAT Ahmedabad Deletes Bogus Purchase Addition Despite Survey Admission of Seller

Espee Pharma Chem Pvt. Ltd. Vs ITO (ITAT Ahmedabad) The Ahmedabad Bench of the Income Tax Appellate Tribunal allowed the assessee’s appeal and deleted the addition of ₹42.95 lakh made under section 69C on account of alleged bogus purchases. The reassessment was initiated based on information from the Insight Portal alleging bogus purchases from M/s Biotavia Labs Pvt. Ltd. Although a survey in the seller’s case revealed a general admission of providing accommodation entries, the Tribunal held that such a blanket statement cannot automatically render all transactions bogus. The Tribunal no...