Bogus Purchases Cannot Be Added u/s 69C When Source of Expenditure Is Explained

ACIT Vs Payal Garg (ITAT Delhi) ITAT Delhi: Bogus Purchases Cannot Be Added u/s 69C When Source of Expenditure Is Explained – Section 69C Misapplied The Delhi Bench of the ITAT dismissed the Revenue’s appeal and allowed the assessee’s cross-objection, holding that addition made under section 69C read with section 115BBE in respect of alleged bogus purchases was legally unsustainable. The Assessing Officer had disallowed purchases of ₹4.51 crore from six suppliers by treating them as unexplained expenditure on the ground that the suppliers were non-filers, had low turnovers, or did not ...