Bogus Purchases: Only 2% Profit Taxable Due to Accepted Sale

Jitendra Rajkumar Agarwal Vs Assessment Unit (ITAT Ahmedabad) Entire Bogus Purchases Can’t Be Taxed — Only 2% Profit Element Sustained- No Transport Proof, Yet Sales Exist: Tribunal Applies GP Theory; Rejects 115BBE Assessee, a chemical trader, was subjected to reassessment u/s 147 based on Insight information alleging bogus purchases of ₹1,75,16,480 from M/s S.K. Enterprises. AO held that the Assessee failed to produce weighbridge slips, delivery challans, PAN & complete address of transporters, DVU notices returned unserved, several vehicle numbers were non-transport vehicles, &...