ITAT holds Bogus Sales Cannot Justify Taxing the Entire Turnover

Shankar Lal, a kachhaa adti/commission agent in food-grains, had turnover exceeding ₹9 crore, of which only a small portion was questioned as bogus. ITAT found that the books, stock records, sales bills, ledgers and corresponding bank receipts had not been disproved, while the assessee had not been given an opportunity to cross-examine key witnesses. It therefore restricted the addition to 0.5% commission on the disputed transactions.