ITAT Chandigarh Quashes Addition by Gross Profit Rate as Purchases Proven Genuine

Prime Steel Industries Private Limited Vs DCIT (ITAT Chandigarh) ITAT Chandigarh held that addition by applying gross profit rate on alleged bogus purchases not justified since it was proved that alleged purchases were made at par and were not under-valued or inflated. Thus, appeal of assessee allowed. Facts- The assessee company is engaged in manufacturing “TMT Bars and M.S. Billet”. During the course of assessment proceedings, AO arrived at the figure of alleged bogus purchases to the tune of Rs.68,26,38,327/- on the basis of information given by the GST department, giving the na...