Entire Bogus Purchase Disallowance Rejected When Books Not Rejected: ITAT Pune

Ellora Ispat Vs ITO (ITAT Pune) ITAT Pune: Bogus Purchase Addition Restricted to 6% Where Sales Accepted and Payments Made by Cheque The Pune Bench of the ITAT partly allowed the assessee’s appeal and dismissed the Revenue’s appeal in a case involving alleged bogus purchases from M/s. Rashmi Enterprises for AY 2009-10. The Assessing Officer had added the entire purchase amount of ₹31.45 lakh as bogus, which was later reduced by the CIT(A) to 12.5% of the purchases. On further appeal, the Tribunal noted that the assessee had produced purchase bills, lorry receipts, corresponding sales det...