Purchase not Bogus for dealing with traders declared as hawala dealers by sales tax department

ITAT held that purchases cannot be treated as bogus merely on the basis of assessee’s dealing with parties who were found out to be hawala dealers by the sales tax department. Detailed Discussion on the issue The assessee was engaged in the business of manufacturing of Indian made foreign liquor primarily Officers Choice Whisky. During the year the assessee purchased various gift items such as OCW glasses,OCW Steel jar,OCW T-5hirts,OCW Key chain,Ice Box with Company Logo,Crystal glass & bowls,Plastic jars with Company logo, Wall Clock, Wrist Watches, Pen sets,Key chains and OCW plates wh...