No addition for bogus purchase on borrowed satisfaction from VAT Dept. without proper examination

Ravi Developments Vs ACIT (ITAT Mumbai) Conclusion: Addition of bogus purchase by AO was not justified on borrowed satisfaction from the Value added tax (VAT) department without proper cross-verification. Held: During the assessment proceedings, the purchase was disallowed by AO @ 91% of the total purchase. The addition was made fully depending on the available documents from the VAT authorities. No cross verification was allowed by AO. Assessee filed an appeal before the CIT(A). The CIT(A) confirmed the addition; hence, assessee filed an appeal before the ITAT. It was held that the VAT author...