Case Law Analysis
|Income Tax Appellate Tribunal
WhatsApp Chats Without Corroboration Cannot Justify Bogus Purchase Additions | ITAT Kolkata Upholds Sales-Accepted Purchases
The ITAT Kolkata ruled that when sales are accepted, corresponding purchases cannot be disallowed based solely on uncorroborated WhatsApp chats or suspicions of shell company links. This sets a critical precedent for taxpayers facing revenue scrutiny, reinforcing that mere association with flagged entities is insufficient without concrete, corroborated evidence of fabrication.