A supplier’s GST registration gets cancelled. Years later, the buyer is told: Your purchase was bogus. But the Delhi ITAT recently said: Not so fast. In ACIT v. Bonlon Industries, the disputed purchases were worth ₹73.32 crore. The tax officer had made a ₹9.16 crore addition, alleging the purchases were bogus. But Bonlon had invoices, GST records, e way documents, bank payments, stock records, supplier confirmations and sales records. And there was another important point: The corresponding sales were accepted. The books weren’t rejected. So the Tribunal found that simply treating the purchases as bogus and applying an ad-hoc 12.5% addition wasn’t justified. The lesson for businesses is simple: A supplier’s later GST problems don’t automatically make your genuine transaction fake. But that doesn’t mean vendor due diligence is optional. If you’re claiming a genuine purchase, keep the evidence trail. #GST #IncomeTax #TaxCompliance #BusinessFinance