Bogus Purchase- Mere Adjustment in Purchase without disturbing Sales not Justified

1.If addition has to be made for bogus purchases then sales should also be disturbed ; 2.Until and unless both parties don’t confirm the cessation of liability then addition cannot be made u/s 41(1); 3.If books of accounts are rejected then net profit estimation basis should be considered for computation of income.

Brief of the case:

1.ITAT Delhi held in ACIT vs Advert Communication that if the AO had considered that the purchases   claimed by the

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