Profit embedded in purchases covered by bogus bills only can be taxed

Pr. CIT Vs M/s. Paramshakti Distributors Pvt. Ltd. (Bombay High Court) Whether on the facts and in the circumstances of the case and in law, the Hon’ble ITAT was justified in reducing the addition from Rs.23.16 Lakhs to Rs.2,21,600/- under Section 68 of the Income Tax Act in respect of the purchases made from M/s. Chevron Metal Products Pvt. Ltd., in spite of the fact that the Director of the said Company had admitted that the transactions were merely accommodation entries ? Hon;ble High Court held that Tribunal applied the principle of taxing the profit embedded in such purchases covere...