Entire Bogus Purchase Cannot Be Added: ITAT Limits Taxation to Profit Element

S R Jewels Vs ITO (ITAT Mumbai) Entire Bogus Purchase Cannot Be Added — ITAT Limits Taxation to Profit Element Only The Mumbai SMC Bench of the Income Tax Appellate Tribunal partly allowed the assessee’s appeal for AY 2009-10 and held that the entire value of alleged bogus purchases cannot be brought to tax, even where purchases are held to be from accommodation entry providers. The assessee, a diamond trader, was alleged to have obtained bogus purchase bills of ₹49.21 lakh from a concern of the Bhanwarlal Jain group. While the Assessing Officer treated the entire purchase amount as unex...