ITAT Mumbai restricts addition to 7% of  of value of bogus purchases

Noble Corporation Vs ITO (ITAT Mumbai) Background: The case involves appeals filed by Noble Corporation against the orders passed by the CIT(A)-45, Mumbai, for the assessment years 2009-10 and 2010-11. The Assessing Officer (AO) made additions relating to alleged bogus purchases made by the assessee. Key Points: The Assessing Officer, based on information from the Sales Tax Department, reopened the assessments and asked the assessee to prove the genuineness of purchases from suspicious dealers. The assessee provided documents such as purchase bills, ledger accounts, delivery challans, sale bi...