Purchases cannot be held bogus merely based on inference from circumstances

K.S. Softnet Solutions Pvt. Ltd Vs ACIT (ITAT Delhi) ITAT Delhi held that unless there was specific material collected to rebut the submissions of assessee then merely on basis of inference from the circumstances, the purchase could not have been held to be bogus. Facts- The assessee company is engaged in the business of trading and development of software and hardware, also construction of road and civil contracts in the shape of E-Check post. Based on the search conducted by VAT Department of Mumbai at the addresses of some concerns, it was found that the purchase bills issued by these conce...