Purchases Treated as Bogus in Another Year Cannot Solely Justify Similar Treatment for Year Under Consideration: ITAT

The ITAT ruled that purchases treated as bogus in a different year cannot be used as sole justification for similar treatment in the year under consideration. In this case, the assessing officer had treated the taxpayer’s purchases as bogus based on findings from a prior year. However, the ITAT held that the previous year's findings were not sufficient grounds to apply the same treatment to the current year's transactions. The court emphasized that each year’s assessment must be based on its own facts and evidence, and prior year findings cannot be automatically applied.