Bogus purchase addition cannot be based on superficial inquiry: Bombay HC

PCIT Vs SVD Resins & Plastics Pvt Ltd (Bombay High Court) Bombay High Court held that half-hearted approach on the part of AO to make additions on the issue of bogus purchase would not be conducive. Bogus purchase addition also cannot be on the basis of superficial inquiry. Facts- Assessee is to be engaged in the business of trading in resins and chemicals on wholesale basis. On information received from the DGIT (Investigation), Mumbai AO invoked Section 147 of the Income Tax Act, 1961 to reopen the completed assessment by issuing notice u/s. 148. AO was of the opinion that the assessee h...