Purchases not become Bogus merely for non-production of Parties

ACIT Vs. M/s GTM Builders & Promoters Pvt. Ltd. (ITAT Delhi)  As per accounting standards AS-7, the purchases and working progress have to be reconciled along with architect report. The AO has not rejected the books of accounts and accepted the book profits while making the addition. The Assessing Officer’s observation that none of the architects can find out the actual material, steel bars used construction of any building of 2 to 3 years cannot be accepted as the consumption of the material can be well estimated from the drawings and the site books. In the case of M/s Suman Enterprise...