Only Profit Element of Bogus Purchases to be Added to Taxable Income: Bombay HC

PCIT Vs Ashwin Purshotam Bajaj (Bombay High Court) In a noteworthy ruling, the Bombay High Court in the case of PCOI Vs Ashwin Purshotam Bajaj has clarified that only the profit element of bogus purchases can be added to taxable income under the Income Tax Act, when the assessee reconciles the stock. The judgment came amidst the backdrop of multiple questions regarding the correct procedure for dealing with non-genuine purchases and bogus accommodation entries in taxable income calculations. The respondent was accused of acquiring accommodation entries from hawala dealers, leading to the addit...