ITAT Surat Upholds Reopening but Restricts Bogus Purchase Addition to 5% of Purchases

Mahavir Agro Industries Vs ITO (ITAT Surat) The Surat Bench of the ITAT partly allowed the assessee’s appeal for AY 2012-13 in a case involving alleged bogus purchases of ₹48.53 lakh from three concerns controlled by an alleged accommodation entry provider. On the jurisdictional issue, the Tribunal rejected the assessee’s challenge to reopening under section 148, holding that the Assessing Officer had acted on specific information from the Investigation Wing, examined the material including statements, recorded detailed reasons, and obtained proper approvals. The plea of lack of cross-e...