Bogus Purchase: ITAT held addition of 3% of GP as reasonable

ACIT Vs Shri Akshay Rajesh Samdariya (ITAT Pune) The solitary issue raised in the appeal by the Revenue and Cross objections by the assessee is against addition deleted/confirmed on account of bogus purchases. The Assessing Officer in re-assessment proceedings made addition of Rs. 2,78,55,984/- as bogus purchases purportedly made by the assessee. In first appeal proceedings, the CIT(A) restricted the addition to 3% of the said purchases, i.e. Rs. 8,35,680/-. A perusal of the impugned order shows that the assessee has failed to produce documentary evidence in the form of Lorry receipts, weighme...