ITAT Upholds Deletion of Bogus Expense Additions Under Income Tax Rules Section 37(1)

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....The ITAT upheld the deletion of additions made by the AO on account of alleged bogus expenses and purchases. The Tribunal rejected the Revenue's attempt to sustain protective disallowance of contract expenses, relying on established precedent that such additions apply only when there is genuine doubt as to the taxable recipient of income. The AO's disallowance of purchases was also affirmed to be unsustainable, as it was based on unproven accommodation entries without supporting evidence. Consequently, the ITAT confirmed the CIT(A)'s order deleting the impugned disallowances, ruling in favor of the assessee and against the Revenue.....