Entire Bogus Purchases Not Taxable; Only Profit Element to Be Added: ITAT Raipur

Gopal Rice Industries Vs ITO (ITAT Raipur)

The Income Tax Appellate Tribunal (ITAT), Raipur Bench, has partly allowed cross-appeals filed by Gopal Rice Industries and the Income Tax Officer (ITO), significantly modifying an addition made on account of alleged bogus purchases. The Tribunal, in its order dated July 16, 2025, upheld the finding that the purchases were not genuine but directed the Assessing Officer (AO) to restrict the addition to a profit element, rather than the entire purchase value, aligning with a Bombay High Court precedent.

The case pertains to the assess

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