TaxTMI 
TaxTMI 
Case laws on bogus purchases in favour of assessee Case law: 16 DTR 278 CIT V/s SINUJA FOODS P LTD (2008 (10) TMI 61 - HIGH COURT RAJASTHAN)
Case laws - bogus purchases
23 Oct 2009 
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Bogus purchases: evidentiary proof of real transactions prevents disallowance in tax assessments.
Bogus purchases are disallowable unless the assessee establishes the reality of transactions through contemporaneous purchase documents, delivery and receipt records, stock or consumption entries, and accounting entries; external corroboration such as transporter notes, challans and insurance evidence materially supports the assessee, and supplier non cooperation does not by itself make a purchase bogus. (AI Summary)
Bogus purchases are disallowable unless the assessee establishes the reality of transactions through contemporaneous purchase documents, delivery and receipt records, stock or consumption entries, and accounting entries; external corroboration such as transporter notes, challans and insurance evidence materially supports the assessee, and supplier non cooperation does not by itself make a purchase bogus. (AI Summary)