Profit element to be taxed in case of bogus purchases

ITO Vs Vimalchand Manikchand Jain (ITAT Surat) Held that if the parties are failed to prove the genuineness of entire transaction of such tainted purchases, the revenue authorities are not entitled to bring the entire transaction to tax. Authorities can tax the income component in such tainted transactions Facts- Based on information, AO carried search action on Rajendra Jain. In his statement, Rajendra Jain confirmed that he was managing various bogus entries for providing accommodation of entry without delivery of actual goods. AO noted that assessee was one of the beneficiaries of such purc...