ITAT reduces addition for Bogus Purchase to 6% from 12.5%

Shri Kamal H. Shah Vs ITO (ITAT Mumbai) Undisputedly, the assessee has failed to prove genuineness of purchases and the authenticity of the dealers in both the impugned assessment years. The notices sent to the dealers under section 133(6) of the Act on the addresses furnished by the assessee by the Assessing Officer were received back unserved by the postal authorities with the remark ‘left or not known’. No confirmations from the dealers were filed by the assessee. Further, the assessee has failed to substantiate trail of goods. Payments made through cheque/banking channels are not sacr...