Addition for Bogus Purchase cannot be made merely based on information received from Sales Tax Department

Advertisement ITO Vs. Prompt Toys (P.) Ltd. (ITAT Mumbai) The assessing officer made addition towards purchases on the basis of information received from Maharashtra Sales-tax department which informed that the parties are involved in providing accommodation entries without any business activity. According to the assessing officer, notices issued under section 133(6) were returned unserved with remark “not known” or “unclaimed”. Therefore, the assessing officer opined that though the assessee has furnished certain evidences to justify purchases from above parties, failed to prove th...