Accepted Contract Receipts, Accepted Purchases: ITAT Deletes Entire Bogus Purchase Addition

ACIT Vs Rajesh Manuprasad Trivedi (ITAT Mumbai) Accepted Contract Receipts, Accepted Purchases: ITAT Deletes Entire Bogus Purchase Addition In a significant relief to a civil contractor, the Mumbai ITAT deleted the entire addition made on account of alleged bogus purchases, holding that once contract receipts are accepted and execution of work is undisputed, the corresponding purchases cannot be treated as income merely on suspicion or third-party statements. The assessee, engaged in civil construction work for Government and Semi-Government authorities, had purchased materials from concerns a...