Only Profit Element Taxable in Bogus Purchase Cases: ITAT Mumbai

ITO Vs Ashokkumar Kothari (ITAT Mumbai) Only Profit Element Taxable in Bogus Purchase Cases: ITAT Mumbai Upholds 20% Estimation Where Sales Are Accepted The Mumbai Bench of the ITAT dismissed the Revenue’s appeal for AY 2010-11 and affirmed the order of the CIT(A) restricting the disallowance on account of alleged bogus purchases to 20% of the purchase value, instead of the 100% disallowance made by the Assessing Officer. The assessee, engaged in trading of plywood, timber and laminate sheets, was alleged to have obtained accommodation purchase bills from hawala operators based on informatio...