https://www.taxtmi.com/caselaws?id=786831 Documentary GST registration and return records, input tax credit entries and detailed inventory reconciliation establish the genuineness of purchases and, therefore, purchases cannot be treated as bogus solely because a supplier failed to file income-tax returns; the addition based on treating a percentage of purchases as bogus is deleted. Interest paid on late deposit of TDS characterised as compensatory (not penal) is not disallowable under Explanation 1 to sub-section (1) of section 37; the disallowance of such interest is deleted. Both deletions were upheld in favour of the taxpayer. en-us Tue, 20 Jan 2026 00:00:00 +0530 Fri, 20 Feb 2026 08:23:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=786831 Documentary GST registration and return records, input tax credit entries and detailed inventory reconciliation establish the genuineness of purchases and, therefore, purchases cannot be treated as bogus solely because a supplier failed to file income-tax returns; the addition based on treating a percentage of purchases as bogus is deleted. Interest paid on late deposit of TDS characterised as compensatory (not penal) is not disallowable under Explanation 1 to sub-section (1) of section 37; the disallowance of such interest is deleted. Both deletions were upheld in favour of the taxpayer. Case-Laws Income Tax Tue, 20 Jan 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=786831