When sales are not in doubt, then 100% disallowance for bogus purchases cannot be made

Sangeeta Metal (India) Vs ACIT (ITAT Mumbai) Introduction: The case of Sangeeta Metal (India) vs ACIT unfolds with the Hon’ble ITAT Mumbai adjudicating on the issue of bogus purchases. Notably, the tribunal cites precedent and rules against a 100% disallowance, emphasizing the need for a nuanced approach based on the gross profit rate. Detailed Analysis: The crux of the matter lies in the reassessment under section 147, where the Assessing Officer added Rs.22,00,556/- due to a possible profit element of 12.5% on alleged bogus purchases. The assessee, challenging the decision, argued that...