Bogus Purchase Addition Unsustainable When Purchases Confirmed by GST Order

ITO Vs Vikas Jain (ITAT Chandigarh) The Income Tax Appellate Tribunal (ITAT), Chandigarh, adjudicated an appeal by the revenue concerning Assessment Year (AY) 2018-19 in the case of alleged bogus purchases by the assessee. The appeal arose from an order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, dated 10-06-2024, which had deleted an addition of Rs. 7,67,89,408 made by the faceless assessment unit. The addition comprised Rs. 7,38,35,970 as alleged bogus purchases from M/s Jai Bhagwati Sales Corp. (JBS) and Rs. 29,53,438 as commission payments. The reve...