Real Expenditure On Goods Received Despite Fictitious Invoices; ITAT Restricts Bogus Purchases Disallowance To 25%

The ITAT ruled that expenditure on goods physically received cannot be fully disallowed despite the presence of fictitious invoices. The tribunal restricted disallowance to 25% of the claimed amount, recognizing genuine business expenses. This judgment underscores the need for distinguishing real transactions from bogus claims during tax assessments, balancing compliance with fairness.