ITAT Delhi Restricts Bogus Purchase Addition to 5% GP on Actual Purchases

Savitri Jain Vs ITO (ITAT Delhi) Assessee, proprietor of M/s M J Paper India, filed appeal against order of CIT(A) arising from reassessment u/s 147, wherein AO had made addition of Rs.76,10,580/- u/s 69C treating purchases from M/s Jai Bhagwani Sales as bogus. CIT(A) partly allowed appeal by estimating GP @ 12.5% on alleged purchases & restricted addition to Rs.9,51,322/-. Before Tribunal, Assessee argued that only Rs.30,42,821/- worth of purchases were actually made from Jai Bhagwani Sales during FY 2017-18, duly recorded in books & supported by bills & bank statements. The figur...