No Addition for Bogus Purchases Without Cogent Evidence – Diamond Trader; Revenue Failed to Prove Nexus

Ankit Gems Private Limited Vs Circle 5(1)(1) (ITAT Mumbai) ITAT Mumbai deleted addition of ₹38.68 lakh made under Section 69C on alleged bogus purchases from Millennium Concern, linked to the Bhanwarlal Jain group. The assessee consistently denied any such purchases and furnished purchase registers. Tribunal held that Revenue relied only on circumstantial evidence and investigation reports, and since the burden to prove taxability lies on the department, no addition could be sustained. The Income Tax Appellate Tribunal (ITAT) in Mumbai has ruled in favor of Ankit Gems Private Limited, deleti...