Bogus Purchase Disallowance Fails — Third-Party List Alone Is Not Evidence

ACIT Vs Escon Elevators Pvt. Ltd. (ITAT Chennai) The ITAT Chennai dismissed the Revenue’s appeal and upheld deletion of a ₹20,588 disallowance u/s 69C, holding that a purchase cannot be branded bogus merely because the supplier’s name appears in a “suspicious dealer / MAHAVAT list”. The AO had disallowed the purchase from M/s Bhumi Sales Corporation solely on the basis of an affidavit allegedly filed by the seller before Sales-tax authorities and the seller’s inclusion in the MAHAVAT list, without conducting any independent enquiry and without furnishing the adverse material to the...