https://www.taxtmi.com/caselaws?id=782035 ITAT Ahmedabad allowed the assessee's appeal and deleted the disallowance made on account of differences between VAT returns and books of account. The Tribunal held that, under Gujarat VAT Rules, compulsory reversal of input tax credit on returned goods causes higher purchase returns in VAT records, while books can record only commercially accepted returns. As sales figures matched in both VAT returns and books and the difference in purchases was less than one percent, without any evidence of bogus or unverifiable purchases, the AO could not treat the variation as inflated purchases or suppressed income. The additions made without rejecting audited books were held unsustainable. en-us Thu, 06 Nov 2025 00:00:00 +0530 Mon, 24 Nov 2025 08:57:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=782035 ITAT Ahmedabad allowed the assessee's appeal and deleted the disallowance made on account of differences between VAT returns and books of account. The Tribunal held that, under Gujarat VAT Rules, compulsory reversal of input tax credit on returned goods causes higher purchase returns in VAT records, while books can record only commercially accepted returns. As sales figures matched in both VAT returns and books and the difference in purchases was less than one percent, without any evidence of bogus or unverifiable purchases, the AO could not treat the variation as inflated purchases or suppressed income. The additions made without rejecting audited books were held unsustainable. Case-Laws Income Tax Thu, 06 Nov 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=782035