Only Embedded Profit Element Taxable: ITAT Delhi Restricts Bogus Purchase Addition to 12.5%

ITO Vs Reeta Goel (ITAT Delhi) Only Embedded Profit Element Taxable: ITAT Delhi Restricts Bogus Purchase Addition to 12.5% – Sales Accepted, So Purchases Can’t Be Fully Disbelieved These cross appeals by Assessee & Revenue arose from NFAC Delhi order dated 16.07.2024 in assessment u/s 143(3) for AY 2021-22. AO had disallowed entire purchases of ₹23.50 Cr treating them as bogus u/s 69C, since suppliers did not respond to notices & were not produced. CIT(A) held that source of expenditure was explained through bank statements & invoices, sales were not doubted, and therefor...