Bogus Purchase: Addition on peal credit basis for Low Margin & Low Vat Rate Items unjustified

Advertisement Ashok S Vakharia HUF Vs ITO (ITAT Mumbai) The issue under consideration is whether the CIT(A) is correct in confirming addition u/s 69C of the Act on account of unexplained purchases made during the year, calculated on the basis of peak credit? In the present case, as noted above, the assessee was a trader of fabrics. The A.O. found three entities who were indulging in bogus billing activities. A.O. found that the purchases made by the assessee from these entities were bogus. This being a finding of fact, we have proceeded on such basis. Despite this, the question arises wheth...