Bogus Purchase Addition Deleted – Suspicion from STR Report Insufficient When Purchases Supported by Evidence

ACIT Vs Raj Diamonds (ITAT Bangalore) Bogus Purchase Addition Deleted – Suspicion from STR Report Insufficient When Purchases Supported by Evidence The assessee, a partnership firm engaged in the business of gold and diamond jewellery, filed its return for AY 2018-19 declaring income of ₹92.24 lakh. Based on a Suspicious Transaction Report (STR) alleging that certain suppliers were accommodation entry providers, the AO reopened the assessment and treated purchases of ₹2.49 crore from two entities as bogus, adding the entire amount to income u/s 147. Before the CIT(A), the assessee pr...