Bogus Purchase Bills, Real Sales- ITAT Says Tax Only the Profit – Not a Blind 25% Cut

ITO Vs Bhavya Pipe Industry (ITAT Delhi) Bogus Bills, Real Sales- ITAT Says Tax Only the Profit—Not a Blind 25% Cut Assessee, a PVC pipe manufacturer, filed a return declaring income of ₹12.61 lakh. The case was selected for scrutiny to verify purchases & creditors. During assessment, AO issued notices u/s 133(6) to 11 suppliers from whom purchases of ₹40.96 crore were made. None of the parties responded, & a verification unit physically inspected the addresses-no supplier was found at the stated locations. Further, the AO noted that 6 suppliers had never filed Income Tax Returns...