Addition on Alleged Inflated Purchases Based Solely on Third-party Data Deleted

Indo Plastic Co. Vs ACIT (ITAT Delhi)

Addition on Alleged Inflated Purchases Based Solely on Third-party Data Deleted – No Independent Enquiry or Evidence Found Against Assessee

Assessee, a partnership firm engaged in manufacturing automobile components, was assessed u/s 147 based on information from search on M/s Bharat Seats Ltd. (BSL) & M/s Sharda Motor Industries Ltd. (SMIL), where it was alleged that these companies suppressed profits by inflating purchases & returning cash. AO alleged that the Assessee inflated purchases of ₹31.35 lakh (3%

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