ITAT restricted hawala party purchases disallowance to 25% of bogus purchase

ITO-19(3)(1) Vs Salem Steel Industries (ITAT Mumbai) The Income Tax Appellate Tribunal (ITAT), Mumbai Bench, has dismissed an appeal by the Revenue Department, upholding the Commissioner of Income Tax (Appeals) [CIT(A)] decision to restrict the disallowance for ‘bogus purchases’ to 25% of the total amount. The case centered on transactions made by a firm from two parties, M/s. Shree Sundha Steels Pvt. Ltd. and M/s. Metalex Tube Industries, which the Investigation Wing had identified as fictitious concerns providing only accommodation entries. The Core Issue: Fictitious Bills, Real ...