Addition in case of bogus purchases restricted to the extent of gross profit involved in business

Bhavesh Punmaji Devasi Vs ITO (ITAT Mumbai)

ITAT Mumbai held that 100% addition in case of bogus purchases unsustainable. Notably, addition to the extent of rate of gross profit in case of bogus purchase is duly sustained.

Facts- The assessee is an individual running a proprietary concern in the name and style of Bhavik Metal, engaged in the business of trading in ferrous and non-ferrous metals.

Based on the information from Sales Tax De

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