Bogus Purchase Addition Restricted to 15% – Entire Disallowance Held Unsustainable

DCIT Vs Remi Sales And Engineering Limited (ITAT Mumbai) Mumbai ITAT upheld the CIT(A)’s order restricting addition on alleged bogus purchases to 15%, rejecting the Assessing Officer’s action of 100% disallowance u/s 69C. The Tribunal observed: The AO made addition solely based on Sales Tax Department information, without: Providing such material to the assessee Conducting independent enquiry The assessee had furnished complete documentary evidence, including: Purchase invoices Goods receipt records Bank payments through account payee cheques Stock registers and quantitative details C...