https://www.taxtmi.com/caselaws?id=458141 The ITAT Amritsar ruled in favor of the assessee regarding disallowance of alleged bogus purchases. The tribunal held that disallowance based solely on third-party information from the Investigation Wing without independent verification by the Assessing Officer was improper. Following SC precedent in Andaman Timber Industries, statements recorded without allowing cross-examination must be excluded from evidence. The assessee had valid documentation including PAN, payments through account payee cheques, stock registers, and the disputed purchases constituted less than 3% of total purchases. The tribunal deleted the disallowance, emphasizing that cumulative evidence favored the assessee over unverified third-party statements. en-us Wed, 15 May 2024 00:00:00 +0530 Wed, 09 Oct 2024 11:14:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=458141 The ITAT Amritsar ruled in favor of the assessee regarding disallowance of alleged bogus purchases. The tribunal held that disallowance based solely on third-party information from the Investigation Wing without independent verification by the Assessing Officer was improper. Following SC precedent in Andaman Timber Industries, statements recorded without allowing cross-examination must be excluded from evidence. The assessee had valid documentation including PAN, payments through account payee cheques, stock registers, and the disputed purchases constituted less than 3% of total purchases. The tribunal deleted the disallowance, emphasizing that cumulative evidence favored the assessee over unverified third-party statements. Case-Laws Income Tax Wed, 15 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=458141