Bogus Purchases: Only 6% Profit Element Taxable: Delhi ITAT

DCIT Vs Enrich Agro Food Products Pvt Ltd (ITAT Delhi) Bogus Purchases: Only 6% Profit Element Taxable—Delhi ITAT Dismisses Revenue’s Appeals for Both Years Assessee, a contract manufacturer for Coca-Cola India engaged in bottling aerated drinks, juices & packaged drinking water, was subjected to reassessment based on Investigation Wing information alleging bogus purchases of Rs.1,73,02,120 from certain parties linked to Shri Daya Shankar. AO treated entire purchases from four suppliers as non-genuine & , relying on Bharatram v. ACIT (Hyd ITAT), applied a 25% GP rate, making an add...