https://www.taxtmi.com/caselaws?id=768411 The ITAT Delhi upheld the AO's findings on bogus purchases after the appellant failed to produce sellers for examination despite opportunities. The AO conducted independent inquiries revealing non-existent parties and defective purchase documents. While the appellant provided bank statements and VAT challans, the tribunal noted shell companies generate such documentation and banking channels don't guarantee genuineness. Since sales genuineness wasn't questioned, the tribunal concluded grey market purchases occurred. Instead of disallowing the entire bogus purchase amount, the tribunal restricted disallowance to 12.5% of unverified purchases, representing estimated tax savings. The appeal was dismissed. en-us Mon, 24 Mar 2025 00:00:00 +0530 Mon, 07 Apr 2025 08:32:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=768411 The ITAT Delhi upheld the AO's findings on bogus purchases after the appellant failed to produce sellers for examination despite opportunities. The AO conducted independent inquiries revealing non-existent parties and defective purchase documents. While the appellant provided bank statements and VAT challans, the tribunal noted shell companies generate such documentation and banking channels don't guarantee genuineness. Since sales genuineness wasn't questioned, the tribunal concluded grey market purchases occurred. Instead of disallowing the entire bogus purchase amount, the tribunal restricted disallowance to 12.5% of unverified purchases, representing estimated tax savings. The appeal was dismissed. Case-Laws Income Tax Mon, 24 Mar 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=768411