Addition @ 20% was upheld on account of alleged bogus purchases and unverified sellers

K L Tambi & Company Vs DCIT (ITAT Jaipur) Conclusion: Tribunal upheld 20% addition instead of 25% on alleged bogus purchases due to unverified sellers agreeing that assessee failed to prove the genuineness of the transactions, and confirmed penalty proceedings. Held: AO disallowed 25% of bogus purchase, which came to Rs. 15,13,844/-, added the same to the income of the assessee, and calculated the total income at Rs. 62,32,210/-.Notice for initiating preceedings u/s 271(1)(c) r.w.s 274 , also came to be issued by AO separately.  AO rejected the books of accounts of the assessee u/s 145(3)...