ITAT Deletes Additions as Bogus Purchases Cannot Be Based on Suspicion Without Evidence

Balmukund Concast Pvt. Ltd. Vs DCIT (ITAT Kolkata) The case before the Income Tax Appellate Tribunal, Kolkata, involved cross appeals for Assessment Years 2019–20 and 2023–24 concerning additions made by the Assessing Officer on account of alleged bogus purchases, suppression of sales, and unaccounted transactions based on WhatsApp chats. For AY 2019–20, the Assessing Officer treated purchases of ₹3.11 crore from a supplier alleged to be a shell entity as non-genuine and estimated income by applying a 4% profit rate, resulting in an addition of ₹12.45 lakh. The Commissioner (Appeals)...