100% disallowance for bogus purchase cannot be done if Sales not doubted

Ashok Popatbhai Chaudhari Vs ITO (ITAT Mumbai)

The Income Tax Officer in this case has made 100% addition on account of bogus purchase resulting in disallowance of Rs. 56,085/-. Upon assessee’s appeal ld. CIT(A) confirmed the same.

It is settled law that when sales are not doubted, 100% disallowance for bogus purchase cannot be done. The rationale being no sales is possible without actual purchases. This proposition is supported form Hon’ble jurisdictional High Court decision in the ca

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