ITAT Mumbai reduces bogus purchase addition to 5% for Ferrous Trader

Manish P. Lathia Vs ITO (ITAT Mumbai) The Income Tax Appellate Tribunal (ITAT), Mumbai, has partly allowed an appeal filed by Manish P. Lathia against an order by the National Faceless Appeal Center (NFAC)/Commissioner of Income Tax (Appeals) concerning the Assessment Year 2009-10. The core issue revolved around the addition made to the assessee’s income on account of alleged bogus purchases. The Commissioner of Income Tax (Appeals) had upheld the Assessing Officer’s (AO) addition of 12.5% of the value of these disputed purchases. However, the ITAT, after considering the facts of t...