When sales not doubted, 100% disallowance for bogus purchase cannot be done

D. C. Engineers Private Limited Vs ITO (ITAT Mumbai)

 Upon careful consideration I find that the assessee has provided the documentary evidence for the purchase. Adverse inference has been drawn due to the inability of the assessee to produce the suppliers. I find that in this case, the sales or any other aspect of working of assessee have not been doubted. It is settled law that when sales are not doubted, 100% disallowance for bogus purchase cannot be done. The rationale being no sales is possible without actual purchases

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