Circular Trading Not Bogus, 12.5% Purchase Addition Deleted

ACIT Vs Kamlesh Deoraj Jain (ITAT Rajkot) Circular Trading Not Equivalent to Fictitious Transactions-ITAT Rajkot Upholds Deletion of 12.5% Addition on Alleged Bogus Purchases; The Rajkot Bench of the ITAT dismissed the Revenue’s appeal and upheld the order of the CIT(A) deleting an addition of ₹2.94 crore made by applying a flat rate of 12.5% on alleged bogus purchases for AY 2017-18. The Assessing Officer had rejected the books under section 145(3) and treated purchases from M/s Ankur Chemfood Ltd. as bogus, alleging circular trading without actual movement of goods, and relied on precede...