Entire purchases cannot be disallowed as Bogus If AO accepted sales

PCIT Vs Rishabhdev Tachnocable Ltd. (Bombay High Court) In this case Tribunal noted that it was an admitted fact that the Assessing Officer did not object to the sales made by the assessee. Therefore, it was evident that they were corresponding purchases. Having noted the above, Tribunal examined the books of accounts of the assessee where from it was found that the assessee had made payments on account of the purchases through account payee cheques and the purchases were entered in its books of account. Thus, assessee was able to prove that the purchases were made only in the alternative way....