Reasonable addition estimated on the basis of 5% bogus purchase sustained

DCIT Vs Silmohan Gems Private Limited (ITAT Mumbai) ITAT Mumbai held that reasonable amount of addition should be made in case of bogus purchase. Accordingly, CIT(A) has justifiably made addition on the reasonable estimate basis @ 5% of the bogus purchase. Facts- On receipt of information from the Investigation Wing of the Income-tax Department that assessee obtained accommodation entry of bogus purchases from some of the entities controlled by ‘Shri Bhanwarlal Jain’ who during the course of search at his premises, admitted to have engaged in issuing bogus bills. AO in the assessment order...