Bogus Purchase Disallowance Limited to 6% Due to Genuine Sales

ACIT Vs Parul Diamond (ITAT Mumbai) Bogus Purchase Saga Ends With 6% GP — Once Sales Accepted, Only Profit Element Taxable -ITAT Mumbai Rejects 100% Disallowance Revenue challenged restriction of addition to 6% of alleged bogus purchases of Rs. 6,66,602 from Mohit Enterprises, stated to be a Bhawarlal Jain accommodation entry concern, while Assessee (a diamond trader) filed CO seeking full deletion and attacking reopening u/s 148. Assessee had filed purchase bills, sales register, stock book, bank statements, export realisation certificates, confirmation from supplier, and an affidavit of pr...