Bogus purchases Addition justified if based on evidences instead of sworn statements

BGR Energy Systems Ltd. Vs ACIT (ITAT Chennai) Conclusion: Additions made by AO was not only on the basis of sworn statement but also on the basis other evidences collected during the course of search including discrepancies in books of accounts regarding accounting of bogus purchases therefore, there was no merit in arguments of assessee that AO had made additions towards alleged purchases only on the basis of statement recorded from those parties without further evidences. Held: Assessee-company was engaged in the business of manufacture of capital goods and in construction of EPC contracts....