Bogus Purchase – Sales turnover cannot be achieved without purchasing materials

ITO Vs Mayur R. Kamdar (ITAT Mumbai) The proceedings stemmed from the Income Tax Officer’s (ITO) claim that the appellant, engaged in the building material trading business, benefited from bogus purchase bills. These bills, received from ten parties, were flagged by the Sales Tax Department and DGIT. The appellant couldn’t produce any party to confirm the transactions, which raised suspicions about his claims. However, despite this, the fact that the appellant possessed primary purchase documents, the payments made through banking channels, and the reconciliation of sale and purchase t...