ITAT Delhi Deletes 25% “Bogus Sales” Disallowance; Section 37 Not Applicable to Sales

Star Track Footwear Pvt. Ltd. Vs DCIT (ITAT Delhi) When “Footwear” walked into Section 37, ITAT showed AO the right path- AO taxed sales as expense – ITAT laced up & kicked out the disallowance-ITAT Delhi Deletes 25% Disallowance on “Bogus Sales” – AO can’t mix up Section 37 with Sales Transactions Assessee, engaged in trading of bag materials, had reported total sales of ₹1.50 crore to M/s Jyoti Products. AO, relying on information from Investigation Wing that Jyoti Products was an entry operator, held that these were bogus sales & disallowed 25% of total sales (₹37....