Untraceable Suppliers: Only 5% Profit Taxable on Purchases

ACIT Vs Meerut Roller Flour Mills (P) Ltd. (ITAT Delhi) ITAT Delhi: Bogus Purchases Cannot Be Added in Full – Profit Element @5% Sustained Where Suppliers Untraceable; Revenue Appeal Partly Allowed The Delhi Bench “F” of the ITAT delivered a consolidated order in ACIT v. Meerut Roller Flour Mills (P) Ltd. (AY 2009-10), partly allowing the Revenue’s appeal and dismissing the assessee’s appeal as infructuous. The assessee, engaged in manufacturing wheat products, had claimed purchases from two parties aggregating to ₹3.38 crore. During assessment, notices issued under section 133(6) ...