HC upheld 12.5% Addition on Bogus Purchases in Contractor’s Appeal

Pr. CIT Vs Vishwashakti Construction (Bombay High Court) An appeal was preferred before the CIT(A) by the assessee, who concurred with the A.O. that purchases from the ten parties in question were bogus but held that the entire amount of such purchases could not be added to the total income and that only the profit element embedded and suppressed in the disputed purchases be assessed to income, which he estimated at 12.5%. The CIT(A) accordingly retained the addition to the extent of 12.5% while deleting the rest. The Tribunal upheld the view of the CIT(A) to treat the purchases from ten parti...