Bogus purchase addition rejected where invoices, transport records, bank payments and confirmations supported genuine trading transactions.

Documentary evidence supported the assessee's purchases through invoices, delivery challans, transport bills, bank payments and party confirmations, so the alleged bogus-purchase addition could not stand. The supplier's absence of a godown, by itself, was insufficient to discredit the transactions because the invoices reflected delivery from the upstream seller to the assessee's premises. The statement relied on by the Assessing Officer did not specifically negate the purchases, and no independent material was shown to have been put to the assessee to establish non-genuineness. On that basis, the addition was held unsustainable and the appellate deletion was upheld.

---

---

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

Analysis: The purchases were supported by invoices, delivery challans, transport bills, bank payments and party confirmations. The supplier's lack of a godown by itself did not discredit the transactions, because the invoices showed delivery from the upstream seller to the assessee's premises. The statement relied upon by the Assessing Officer did not specifically negate the assessee's purchases, and the assessee was not shown to have been confronted with any independent material establishing non-genuineness. The documentary evidence was not effectively disproved.

Conclusion: The addition on account of alleged bogus purchases was not sustainable and the deletion made by the appellate authority was upheld in favour of the assessee.

---