ITAT Mumbai capped Bogus Purchases Addition at 12.5% Gross Profit

DCIT-19(3) Vs S. Rasiklal and Co. (ITAT Mumbai) The Income Tax Appellate Tribunal (ITAT), Mumbai, has dismissed an appeal by the Deputy Commissioner of Income Tax (DCIT) and upheld an order by the Commissioner of Income Tax (Appeals) [CIT(A)] that restricted an addition for bogus purchases to a 12.5% gross profit rate. The case involves S. Rasiklal and Co., which was assessed for the Assessment Year 2009-10. The original assessment by the tax authorities disallowed the entire amount of Rs. 3,73,60,738 in purchases made from two firms, M/s Impex Gems and M/s Jewel Diam. These firms were identif...