No addition for bogus purchases – Depreciation cannot be disallowed on such purchase

Divyashree Infrastructure Vs DCIT (ITAT Bangalore)

Since the assessee was undertaking construction of the projects, all the URD purchases have been included in the “Capital work in progress” account. We notice that the assessing officer has identified URD purchases every year and he has held them to be bogus in nature, i.e., according to AO, the assessee has inflated the expenses by accounting URD purchases. We noticed that the AO did not make addition of the alleged inflated/bogus expenses in the respective years. Howev

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