12.5% Bogus Purchase Addition Sustained as Transport & Consumption Evidence Was Missing

Balajee Loha Private Limited Vs ACIT (ITAT Raipur) The Income Tax Appellate Tribunal (ITAT), Raipur, dismissed the assessee’s appeal for Assessment Year 2018-19 and upheld the order of the Commissioner of Income Tax (Appeals) [CIT(A)] sustaining a disallowance of 12.5% of purchases treated as bogus. The assessee, engaged in the business of manufacturing and trading steel products, filed its return of income declaring income of Rs.7,13,26,490. The return was initially processed under Section 143(1), wherein employees’ contribution to PF and ESIC paid beyond the prescribed due dates ...