Bogus purchase additions require contrary evidence; documentary proof and undisputed sales led to deletion of the addition.

Alleged bogus-purchase addition was deleted because the assessee substantiated the purchases with bills, supplier confirmations, bank statements and suppliers' returns and financial statements, while the sales were not doubted. The Tribunal relied on its earlier order in the assessee's own case and held that the assessee had discharged the burden of proving genuineness of the purchases. It further held that no addition was warranted merely on the basis of Investigation Wing material when the documentary evidence was not controverted. The issue was therefore decided in favour of the assessee.

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Issues: Whether the addition made on account of alleged bogus purchases was sustainable.

Analysis: The assessment was based on information that the purchases were accommodation entries. The assessee had placed on record purchase bills, confirmations, bank statements, returns and financial statements of the suppliers. The sales were not doubted. The Tribunal followed its earlier decision in the assessee's own case, where it had been held that the assessee had discharged the burden of proving the genuineness of purchases and that no addition was warranted merely on the basis of investigation wing material when the documentary evidence was not controverted.

Conclusion: The addition on account of alleged bogus purchases was deleted and the issue was decided in favour of the assessee.

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