Only profit element on Bogus purchases can be added to Income: HC

PCIT Vs Ram Builders (Bombay High Court) It was held that without purchase of the material, it was not possible for the appellant (Assessee) to complete the work allotted to them by a semi Government Authority. It was also held that the A.O. had never disputed or examined the aspect of contract receipts from BMC or the consumption report of the material used in the execution of works and further that since contract work carried out by the appellant was not doubted or disputed by the A.O, the A.O. could not have denied that purchases were not made and the material was not used in the execution ...