Profit element involved in bogus purchases should be taxed

Dhanesh Mulji Gala Vs ITO (ITAT Mumbai) Held: ITAT held that held that the profit element involved in the bogus purchases should be brought to tax and upheld the addition of estimated profit element of 12.50% of the value of non-genuine purchases. Issue: – In the appeals filed by Shri Dhanesh Mulji Gala and M/s Dhanesh Trading Co, the common issue urged relates to the addition made on account of alleged bogus purchases. The AO received information that these assessees have purchased materials from persons, who were identified as hawala dealers. The allegation is that these hawala dealer...