Valid documentation & bank payments: ITAT deletes bogus purchase addition

ACIT Vs Karam Chand Rubber Industries (P) Ltd. (ITAT Delhi) In the case of ACIT vs. Karam Chand Rubber Industries (P) Ltd. (ITAT Delhi), the Income Tax Appellate Tribunal (ITAT) addressed two key issues: the addition of ₹2.79 crores for alleged bogus purchases and the disallowance of ₹4.2 lakhs in salary payments. Alleged Bogus Purchases: The Assessing Officer (AO) added ₹2.79 crores, asserting that purchases from four suppliers were bogus, as the suppliers were not traceable during post-search inquiries. The AO claimed the assessee failed to establish the identity, creditworthiness, and...