Addition restricted to 25% in case of bogus purchase

Sumer Chand Jain Vs ITO (ITAT Delhi) ITAT Delhi held that addition in case of bogus purchases is restricted to the extent of 25% of the purchases. As lower authorities made addition of 25% of bogus purchase, the same is sustainable. Facts- The assessee individual is engaged in the business of trading in export handicraft goods and jewellery. For AY 2010-11, the assessee filed his return on 28.09.2010 declaring income of Rs. 6,31,180/-. It was processed under section 143(1) of the Income Tax Act, 1961 (the “Act”). Subsequently, the assessment was reopened by issue of notice under section 14...