Case Law Analysis
|Income Tax Appellate Tribunal
Section 37 ITA | Disallowance of Purchases Cannot Be Based Solely on Absence of E-Way Bills When Invoices, Bank Statements and Supplier Confirmations Are Submitted : ITAT Delhi
The ITAT Delhi has ruled that tax authorities cannot disallow business purchases under Section 37 of the Income Tax Act merely because e-way bills were not produced, if the assessee has provided credible documentary evidence including invoices, bank records, and supplier confirmations. This sets a critical precedent for taxpayers in the manufacturing and trading sectors, reinforcing that substantive proof of transaction legitimacy outweighs procedural compliance gaps under GST.