Revenue Appeal Dismissed by HC as Bogus Purchase Addition Became Pure Estimation Issue

PCIT Vs Late Shri Ravindra Bhaskar Deshmukh (Bombay High Court) The Bombay High Court heard an appeal filed by the Revenue against an order of the Income Tax Appellate Tribunal concerning addition on account of alleged bogus purchases. Although the tax effect involved was ₹8,55,130, the Revenue submitted that the appeal was covered by exceptions under CBDT circulars. Without deciding that issue, the Court heard the appeal on merits. The Revenue contended that the Assessing Officer had originally made a 100% addition towards bogus purchases, which was subsequently reduced to 12.5% by the ITAT...