ITAT upheld disallowance at the rate of 12.5% of bogus purchases

Opel paper Mills Limited Vs DCIT (ITAT Mumbai) The learned CIT appeal noted that the major items of the expenditure is a purchase of paper from the sister company specialty papers Ltd amounting to ₹ 888,827,942/–. These transactions were doubted by the learned assessing officer during the remand proceedings as the purchases are transacted only through the journal entries and there are no bank transaction as well as there is no transportation receipts connected with these purchases. The claim of the assessee is that these are parties, who are separate and distinct and all of them have duly ...