Disallowance of purchases without examining documentary evidences unjustifiable: ITAT Delhi

Vayam Technologies Ltd Vs DCIT (ITAT Delhi) ITAT Delhi held that disallowance of purchases and restricting the amount of purchases to 12.50% without examining the documentary evidences produced by the assessee is unjustified. Accordingly, matter remanded back to AO with direction to decide afresh. Facts- Vayam Technologies Ltd. (the assessee) opposes the disallowance of purchases by AO, asserting the compliance with regulatory requirements. It is argued that the purchases and sales transactions were reported to the VAT & Service Tax Department. The Income Tax Department has accepted sales ...