ITAT Deletes Addition of Alleged Bogus Purchases citing lack of evidence

Rama Hygienic Products Pvt. Ltd. Vs ACIT (ITAT Delhi) The Income Tax Appellate Tribunal (ITAT) Delhi has ruled in favor of Rama Hygienic Products Pvt. Ltd., overturning additions made by the Assessing Officer (AO) related to alleged bogus purchases and undisclosed sales. The dispute centered on the AO’s disallowance of purchases from M/s Raghuveer Singh Devinder Kumar, citing suspicious transportation. The AO initially added Rs. 36,55,931 to the company’s income, which was later reduced to 10% by the Commissioner of Income Tax (Appeals) [CIT(A)]. However, the ITAT found that the co...