Treating purchases as bogus unjustified if sales duly accepted

Bhartiya International Ltd. Vs DCIT (ITAT Delhi) ITAT Delhi held that disallowance of purchases by treating it as bogus unjustified as the impugned purchases have been sold and the sales have been accepted as there cannot be any sale without purchases. Facts- During the year under consideration, assessee has earned exempt income of Rs. 1,01,073/-. As against the same, assessee has made suo motu disallowance of Rs. 2,52,249/- on the basis of 1% of average value of investment from which tax free dividend income was received. The assessee thus contends that in view of suo motu disallowance which ...