Addition for bogus purchase only to the extent of lower GP declared

Omkar Metal & Alloys Corporation Vs ITO (ITAT Mumbai)

Addition in case of bogus purchase to be made only to the extent of lower GP declared as compared to GP in normal purchases

Conclusion: Addition in case of bogus purchases was required to be made only to the extent of lower GP declared by assessee on bogus purchases as compared to G.P. on normal purchases. Thus, no addition was warranted in case of assessee as GROSS PROFIT declared by assessee in respect of alleged bogus purcha

Please become a Premium member. If you are already a Premium member, login here to access the full content.