Bogus purchase claims led to disallowance of depreciation, additional depreciation and VAT claim for lack of genuineness.

Depreciation, additional depreciation and the related VAT claim were disallowed where the purchases were treated as bogus and linked to a non-existent supplier. The assessee failed to establish the genuineness of the purchases beyond invoices, while the supplier was found absent at the stated address and GST enquiry showed its declared business did not match the alleged goods. On that record, the purchase claim lacked credibility and the adverse material was not rebutted, so the disallowance was upheld.

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Issues: Whether the assessee was entitled to depreciation and additional depreciation, and to the related VAT claim, in respect of purchases treated as bogus from a non-existent supplier.

Analysis: The assessee discharged no convincing onus to establish the genuineness of the purchases beyond furnishing invoices. The supplier was found to be non-existent at the stated address, and the GST enquiry showed that its declared line of business did not match the goods allegedly purchased. The record therefore supported the finding that the purchase claim lacked credibility, and the assessee failed to rebut the adverse material.

Conclusion: The disallowance of depreciation, additional depreciation, and VAT claim was upheld, and the issue was decided against the assessee.

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