Must Read: ITAT Mumbai’s Judgement On Disallowance of Bogus Purchases

Must Read: ITAT Mumbai's Judgement On Disallowance of Bogus Purchases

In the case of V.R.Enterprises vs ITO, ITAT Mumbai has held that:

The assessee was in possession of primary purchase documents and the payments to the suppliers was through banking channels. The assessee had established corresponding sales before Ld. AO. The books of accounts were audited wherein quantitative details of stock was provided. We are of the considered opinion that there could be no sale without actual purchase of material keeping in view the fact that the assessee was engaged in trading activities. At the same time, the assessee failed to produce even a single supplier to confirm the purchase transactions. The delivery of material could not be substantiated.

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Dhanraj Sharma

Dhanraj Sharma is CEO of Tax Concept. He is on a Mission to Educate and Empower 10,000+ Professionals across the Country.

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