Dismissing the appeal of the revenue the Court held that , Purchases cannot be treated as Bogus if (a) they are duly supported by bills, (b) all payments are made by account payee cheques, (c) the supplier has confirmed the transactions, (d) there is no evidence to show that the purchase consideration has come back to the assessee in cash, (e) the sales out of purchases have been accepted & (f) the supplier has accounted for the purchases made by the assessee and paid taxes thereon.
PCIT v. Tejua Rohitkumar Kapadia ( 2018) 94 Taxmann.com 324 ( Guj)(HC) Editorial: SLP of revenue is dismissed PCIT v. Tejua Rohitkumar Kapadia ( 2018) 94 Taxmann.com 325 (SC), www.itatonline.org
S. 69C : Unexplained expenditure -Bogus Purchases- Purchases cannot be treated as Bogus if (a) they are duly supported by bills, (b) all payments are made by account payee cheques, (c) the supplier has confirmed the transactions, (d) there is no evidence to show that the purchase consideration has come back to the assessee in cash, (e) the sales out of purchases have been accepted & (f) the supplier has accounted for the purchases made by the assessee and paid taxes thereon [ S.143(3) ]