https://www.taxtmi.com/caselaws?id=783626 The dominant issue was whether disallowance of expenses under s. 37 on the allegation of bogus purchases could rest solely on a retracted third-party statement alleging invoice accommodation and cash generation without delivery. The Tribunal held that the Act does not permit additions based only on such statements absent corroborative material, and that the assessee had produced contemporaneous documentary evidence supporting the expenditure which the AO failed to rebut with any specific adverse finding. It was also noted that no purchases were shown from the alleged accommodation provider, which was engaged in transport activity. The disallowance/addition was deleted and the appeal was decided against the revenue. en-us Wed, 10 Dec 2025 00:00:00 +0530 Fri, 19 Dec 2025 08:30:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=783626 The dominant issue was whether disallowance of expenses under s. 37 on the allegation of bogus purchases could rest solely on a retracted third-party statement alleging invoice accommodation and cash generation without delivery. The Tribunal held that the Act does not permit additions based only on such statements absent corroborative material, and that the assessee had produced contemporaneous documentary evidence supporting the expenditure which the AO failed to rebut with any specific adverse finding. It was also noted that no purchases were shown from the alleged accommodation provider, which was engaged in transport activity. The disallowance/addition was deleted and the appeal was decided against the revenue. Case-Laws Income Tax Wed, 10 Dec 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=783626