ITAT Restricts Bogus Purchase Addition as AO Applied Unrelated Gross Profit Rate

Advertisement Kanta Devi Jalan Vs DCIT (ITAT Delhi) The Income Tax Appellate Tribunal (ITAT), Delhi, partly allowed the assessee’s appeals for Assessment Years 2013-14 to 2016-17 concerning additions made on alleged bogus purchase and sale transactions. The Assessing Officer had treated transactions with certain alleged dummy concerns as accommodation entries, rejected the books of account under Section 145(3), and estimated additional gross profit (GP) at 2.88% by adopting the highest GP rate of AY 2019-20. The Tribunal observed that the assessee’s sales had been accepted, transactions...