ITAT Mumbai direct AO to compute addition at 3% of Bogus Purchase

Ramniklal and Sons Vs ITO (ITAT Mumbai) In the case of Ramniklal and Sons vs. ITO, the Income Tax Appellate Tribunal (ITAT) in Mumbai addressed an appeal concerning the assessment order issued under Section 143(3) of the Income Tax Act for the assessment year 2010-11. The dispute centered on an addition of ₹60,65,780 made by the Assessing Officer (AO) due to alleged bogus purchases from three parties: M/s Daksh Diamonds, M/s Krishna Diam, and M/s Rajen Gems. The assessee contested the addition, arguing that the AO’s conclusions were primarily based on information from third-party inves...