Bogus Purchase: AO cannot reject reply without recording satisfaction

Abhinav Mittal Vs Union of India (Gauhati High Court) ITAT held that A transaction of purchase and a transaction of sale are two different transactions in two opposite directions. If the allegation is that bogus purchases were made and the reply given thereof is that no such purchases were made, but in fact it was a sale by the assessee, it was for the Income Tax officials to apply their own mind on the reply given by the petitioner. Conveniently, the Assistant Commissioner converts the allegation made in the show cause notice from a bogus purchase to that of a sale after the reply of the peti...