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AO Fails to Carry Out Adequate Verification with GST dept: ITAT Remands Alleged Bogus Purchase...

Update / Judgement Date

02 Sept 2025

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

Income TaxOther Legal Matters

The ITAT has remanded a case, ruling that the Assessing Officer (AO) "failed to carry out adequate verification with the GST Department" regarding an "alleged bogus purchase addition of ₹10.51 crore." The tribunal's decision, which is a significant victory for the company, was made on the grounds that the company's claim was not supported by evidence. The ruling clarifies that a tax authority can't add a tax to a company's account without a valid reason.