“Bogus Purchases” Overruled: ITAT Prioritizes Commercial Reality

Jain Brothers Vs NFAC (ITAT Delhi)

Goods Came by Cycle Rickshaw, but Justice Arrived by ITAT- ITAT Delhi Deletes Addition on ‘Bogus Purchases’ – “Cycle Rickshaw or Not, Sales Were Real!”

Assessee, a Delhi-based firm, was subjected to reassessment u/s 147 on the basis of information that it had made bogus purchases of ₹6,41,900 from M/s Balaji Trading Company, alleged to be a non-existent entity. AO treated the said purchases as unexplained expenditure u/s 69C r.w.s. 115BBE, holding that the supplier was inactive on the GST portal & hence fict

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