Only Profit Element Taxable in Bogus Purchase Cases: ITAT Mumbai

ITO Vs Ashokkumar Kothari (ITAT Mumbai)

Only Profit Element Taxable in Bogus Purchase Cases: ITAT Mumbai Upholds 20% Estimation Where Sales Are Accepted

The Mumbai Bench of the ITAT dismissed the Revenue’s appeal for AY 2010-11 and affirmed the order of the CIT(A) restricting the disallowance on account of alleged bogus purchases to 20% of the purchase value, instead of the 100% disallowance made by the Assessing Officer. The assessee, engaged in trading of plywood, timber and laminate sheets,

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