The assessee, engaged in trading of craft paper and chemicals, had shown purchases of ₹43,75,381 from M/s. Arun Paper & Iron Traders. AO treated the purchases as accommodation entries and disallowed 25% (₹10,93,845) as bogus purchases. Before the CIT(A), additional evidence was filed and remand proceedings were conducted wherein the supplier, Shri Arun Agarwal, appeared and produced books of account, invoices, delivery challans, assessment orders, and confirmed the transactions. Despite this, CIT(A) sustained the addition. On appeal, ITAT noted that in the case of assessee’s wife, Smt. Anuradha Dalmia, on identical purchases from the same supplier, the addition was deleted by CIT(A) and confirmed by ITAT after considering the vendor’s sworn statement. Tribunal further observed that sales made by the vendor were accepted in his own reassessment and no allegation was made regarding sales to the assessee. Payments were through banking channels and stock registers and delivery challans supported the purchases.  Followed  PCIT v Mohammad Haji Adam & Co. [2019] 103 taxmann.com 459 (Bom) (HC);  Distinguishing the Bombay High Court ruling in PCIT v. Kanak Impex (India) Ltd  [2025] 474 ITR 175 / 172 taxmann.com 283 (Bom)( HC)  which involved non-participation of the assessee in proceedings, the Tribunal held that in the present case the assessee fully participated and the vendor had confirmed the sales. Accordingly, the addition of 25% of purchases was deleted and appeal was allowed.  (ITA No. 3883/Mum/2024 dt . 29.05.2025( AY. 2008 -09 )