No addition for “bogus purchases” when assessee already declared higher GP – Mumbai ITAT grants major relief to diamond trader

Shail Internatinal Vs DCIT (IITAT Mumbai) No addition for “bogus purchases” when assessee already declared higher GP – Mumbai ITAT grants major relief to diamond trader In a significant ruling involving the diamond trade, the Mumbai ITAT held that no separate addition towards alleged bogus purchases can be sustained where the assessee has already disclosed a higher Gross Profit (GP) on such transactions than on genuine transactions. The Tribunal deleted the additions made by the AO and enhanced by the CIT(A), subject to verification of GP figures. The reassessment proceedings were in...