Disallowance of whole of Purchases based on some bogus purchases

[Karna Thaker]

Can AO disallow the whole of purchases based on the fact that some bills have found to be bogus.Also when the same has been purchased through a broker of the assessee and relevant brokerage paid. Please also provide with relevant case laws if Any

AI Summary

Assessing Officer Can Only Disallow Purchases With Bogus Bills; Genuine Bills Must Be Considered Per Section Guidelines. An individual raised a query about whether an Assessing Officer (AO) can disallow the entirety of purchases if some purchase bills are found to be bogus, especially when these purchases were made through a broker and brokerage was paid. The response clarified that only the portion of purchases supported by bogus bills should be disallowed. Genuine expenditure supported by legitimate bills should not be disregarded, and the factual position should guide the determination of the issue.