Addition for bogus purchases invalid if books not rejected & sales accepted

Rajendra Shangari Vs DCIT (ITAT Kolkata) Income Tax Appellate Tribunal (ITAT) Kolkata bench has ruled in favor of assessee Rajendra Shangari, stating that an Assessing Officer (AO) cannot make additions to income based on alleged bogus purchases without first rejecting the assessee’s books of account or disputing reported sales. The Tribunal’s decision effectively deletes an addition of Rs. 38,46,188/- made by the AO for the assessment year 2018-19. The case involved Rajendra Shangari, an individual engaged in contractual work for Tata Steel and the state government. For the assess...