https://www.taxtmi.com/caselaws?id=767983 Purchase additions based solely on an untested third-party statement could not be sustained where the assessee produced purchase bills, transport documents and bank records, and no independent enquiry was made or cross-examination provided; the alleged bogus purchase addition was therefore deleted. Bonus paid to director-employees was also not disallowable under section 36(1)(ii) because it was authorised by board resolution, linked to services rendered, separately taxed and not shown to be a disguised dividend. The commentary states that contractual remuneration for services is distinct from dividend or profit distribution, and that the Revenue failed to establish any tax-avoidance device. en-us Tue, 11 Mar 2025 00:00:00 +0530 Fri, 28 Mar 2025 08:31:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=767983 Purchase additions based solely on an untested third-party statement could not be sustained where the assessee produced purchase bills, transport documents and bank records, and no independent enquiry was made or cross-examination provided; the alleged bogus purchase addition was therefore deleted. Bonus paid to director-employees was also not disallowable under section 36(1)(ii) because it was authorised by board resolution, linked to services rendered, separately taxed and not shown to be a disguised dividend. The commentary states that contractual remuneration for services is distinct from dividend or profit distribution, and that the Revenue failed to establish any tax-avoidance device. Case-Laws Income Tax Tue, 11 Mar 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=767983