Addition for Bogus Purchases based merely on statements and not backed by any material evidences is not sustainable

M/s. Aquatic Remedies Pvt. Ltd. Vs The DCIT (ITAT Mumbai)

The Revenue has alleged the assessee of taking bogus purchases and accommodation bills on account of such purchased. In our considered opinion this refers to two possibilities.

1) A person is purchasing goods from another person without any bill and then taking purchase bills from a third person to show the quantities purchased. Under this category, there is physical movement of goods.

2) A person is not purchasing any goods but simply taking bills showing

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