Entire Purchase Can’t Be Disallowed as Bogus When Sales Are Accepted: ITAT Chennai

Anshu Sahai (HUF) Vs ACIT (ITAT Jaipur) Bogus Purchase Allegation Fails – Only Profit Element to Be Taxed, Rules ITAT Chennai- Entire Purchase Can’t Be Disallowed When Sales Are Accepted – Mere Non-traceability of Suppliers Not Enough- ITAT Chennai Restricts Addition to 12.5% Assessee, engaged in trading of pulses, appealed against disallowance of purchases treated as bogus on the ground that suppliers were found to be “non-existent” during verification. AO held that Assessee failed to produce delivery challans, lorry receipts, & confirmations from parties. AO, therefore, disallo...