2022 (5) TMI 1687

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.... ld. CIT(A) has erred in sustaining 100% disallowance on account of bogus purchase, vide order dated 27.08.2021 pertaining to assessment year 2010-11. 2. Brief facts of the case are that assessee in this case is engaged in the retail trading business. 3. The assessment in this case was reopened upon receipt of information from the Sales Tax Department that assessee has made bogus purchases of Rs....

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....s and also lack of other supporting evidence purchases. I find that in this case the sales have not been doubted. It is settled law that when sales are not doubted, 100% disallowance for bogus purchase cannot be done. The rationale being no sales is possible without actual purchases. This proposition is supported form Hon'ble jurisdictional High Court decision in the case of Nikunj Eximp Enterpris....