Bogus purchase additions require proper verification; deletion was set aside and the matter remitted for fresh examination.

Deletion of an addition based on alleged bogus purchases was not sustained where the assessee had failed to furnish details during assessment despite repeated notices, and the appellate finding that all particulars had been produced was internally contradictory. Relief could not be granted without proper verification of the material supporting the purchases, and the Assessing Officer was entitled to examine the veracity of the submissions accepted at appellate stage. The matter was therefore remitted to the Assessing Officer for fresh examination after giving the assessee adequate opportunity.

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Issues: Whether the deletion of addition made on account of alleged bogus purchases was sustainable, or whether the matter required remand to the Assessing Officer for verification.

Analysis: The assessee had not furnished details during assessment proceedings despite repeated notices, while the appellate finding that all details had been produced was found to be contradictory. In a case involving alleged bogus purchases, relief could not be granted without proper examination of the material, and the Assessing Officer ought to have been given an opportunity to verify the veracity of the submissions accepted at the appellate stage.

Conclusion: The deletion of the addition was not sustained and the matter was remitted to the Assessing Officer for fresh examination after affording adequate opportunity to the assessee.

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