Bogus Purchase: AO Cannot Disallow Expenses Solely on Third-Party Info

Maloo Constructions (India) Pvt. Ltd. Vs DCIT (ITAT Bangalore) ITAT Bangalore Deletes Bogus Purchase Addition – AO Cannot Rely Solely on Third-Party Information Without Enquiry Assessee, engaged in construction & government contracts, filed return declaring income of ₹6.51 crore. The case was selected for scrutiny based on REIC information alleging bogus purchase bills issued by M/s. Gandhi Iron & Steel Co. AO held that purchases worth ₹97.57 lakh from Gandhi Iron & Steel Co. were bogus, disallowing the same u/s 143(3). CIT(A) upheld disallowance, observing that mere invoices...