https://www.taxtmi.com/caselaws?id=770089 ITAT Ahmedabad allowed the assessee's appeal against disallowance of bogus purchases. AO treated purchases from two parties as bogus after they failed to respond to notices u/s 133(6), estimating 3.92% GP. CIT(A) reduced disallowance to 2%. ITAT held that addition cannot be sustained solely on third-party non-response when assessee produced adequate primary evidence including audited books u/s 44AB, confirmation letters, and detailed trading records. CIT(A)'s decision to acknowledge genuine transactions while sustaining 2% disallowance was contradictory and unsustainable. en-us Fri, 02 May 2025 00:00:00 +0530 Tue, 06 May 2025 09:58:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=770089 ITAT Ahmedabad allowed the assessee's appeal against disallowance of bogus purchases. AO treated purchases from two parties as bogus after they failed to respond to notices u/s 133(6), estimating 3.92% GP. CIT(A) reduced disallowance to 2%. ITAT held that addition cannot be sustained solely on third-party non-response when assessee produced adequate primary evidence including audited books u/s 44AB, confirmation letters, and detailed trading records. CIT(A)'s decision to acknowledge genuine transactions while sustaining 2% disallowance was contradictory and unsustainable. Case-Laws Income Tax Fri, 02 May 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=770089