2020 (11) TMI 131

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....This is an appeal by the Revenue and cross objection by the assessee, wherein they are aggrieved that the learned Commissioner of Income Tax (Appeals) [in short learned CIT(A)] has erred in sustaining 12.5% disallowance on account of bogus purchases, vide order dated 25.1.2019 pertaining to assessment year 2009-10. 2. Brief facts of the case are that assessee in this case is engaged in the busi....

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....t assessee has provided the documentary evidence for the purchase. Adverse inferences have been drawn due to the inability of the assessee to produce the suppliers. I find that in this case the sales have not been doubted. It is settled law that when sales are not doubted, hundred percent disallowance for bogus purchase cannot be done. The rationale being no sales is possible without actual pur....