Tribunal upheld CIT(A) addition of alleged bogus purchases citing genuine sales and statement retraction

ACIT Vs Krishnaavtar J. Kabra (HUF) (ITAT Ahmedabad) Conclusion:  Where assessee purchased diamonds for Rs. 3.53 crores and sold them for Rs. 3.56 crores, the accepted sales confirmed that corresponding purchases must have taken place. Without purchases, there would have been no sales. AO’s claim of inflated purchases to reduce tax liability was not substantiated, as all 10 transactions of diamond purchase and sale were documented with relevant details. CIT(A)’s decision deleting the addition for alleged bogus diamond purchases, citing genuine sales and the retraction of the statement was...