Disallowance should be restricted to profit element in case of of bogus purchases when sales were not doubted

Leela Greenship Recycling Pvt. Ltd Vs DCIT (ITAT Ahmedabad) Conclusion: When sales were not doubted, entire purchases could not be disallowed merely on the ground that suppliers were non-genuine, it was deemed appropriate to restore the matter back to the file of AO for carrying out limited verification and addition should be restricted to profit estimation. Held: Assessee was engaged in the business of ship breaking and trading of iron and steel items. It filed its original return of income for A.Y. 2018–19 declaring a total income of Rs. 15,86,750/-. The case was reopened under section 147...