Bogus purchase and sales additions require consideration of cited precedent before merits are decided, with remand for fresh review.

Where an assessee relies on a relevant High Court precedent on alleged bogus purchases and sales, the adjudicating authority must consider its applicability before deciding the addition on merits. The Tribunal had failed to deal with the cited decision despite it being part of the record, so the matter was remanded for fresh consideration. The Tribunal is to re-examine the addition relating to alleged bogus purchases and sales, address the precedent relied upon by the assessee, and decide the issue afresh in accordance with law.

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Issues: Whether the appeals required remand to the Tribunal for fresh consideration of the addition made towards alleged bogus purchases and sales, in view of the Tribunal's failure to deal with the assessee's reliance on the cited precedent.

Analysis: The assessee had relied upon a decision of the High Court on the treatment of bogus purchases and sales, and the record showed that the decision had been cited before the Tribunal. The impugned order did not consider or deal with that decision. Where a relevant decision relied upon by a party is not addressed, the adjudicating authority is expected to examine its applicability before deciding the issue on merits.

Conclusion: The matter was remanded to the Tribunal to reconsider the addition relating to alleged bogus purchases and sales after dealing with the cited decision and to decide the issue afresh in accordance with law.

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