Addition towards bogus purchases based on suspicion, surmises and unverified information unjustified

Patel Kenwood Pvt Ltd Vs ITO (ITAT Ahmedabad)

ITAT Ahmedabad held that addition towards bogus purchases made without proper verification of facts but just on the basis of suspicion, surmises and unverified information unjustified and liable to be deleted.

Facts- The assessee is a company engaged in the business of imported wood and Eco-friendly particle Boards. The case was selected for scrutiny assessment. AO noticed that the purchases made from M/s. Laxmi Enterprises as bogus transaction. Therefore AO issued a summon u/s. 133(6) of the Act on 06-12-2019, h

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