The ITAT, Kolkata Bench in M/s Diach Chemicals & Pigments Pvt. Ltd. v. DCIT, Central Circle 4(2), Kolkata [ITA Nos. 1469 & 1470/KOL/2025 dated May 21, 2026] set aside the addition sustained by the Commissioner of Income-tax (Appeals) on account of alleged bogus purchases and held that where the impugned purchases are duly backed by tax invoices, e-Way bills, lorry receipts, weighment slips, GSTR-1 and GSTR-3B returns filed by the suppliers and payments routed through banking channels, and where the corresponding sales stand accepted, the purchases cannot be branded bogus merely on the strength of a statement recorded during search or on suspicion — more so when the input tax credit availed on such purchases stands allowed by the GST authorities.
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