Addition restricted to estimated profit element in bogus accommodation entries: ITAT Delhi

DCIT Vs Sh. Vinay Sharma (ITAT Delhi) ITAT Delhi held that only the estimation profit element has to form subject matter of addition in case of bogus accommodation entries. Accordingly, CIT(A) order directing @2.5% on total bogus accommodation entry upheld. Facts- Vide the present appeal, CIT(DR) vehemently argues that the Assessing Officer’s section 153A r.w.s. 144 assessment had rightly disallowed the assessee’s various claims inter alia including bogus purchases of Rs.6,32,86,276/-, negating cash credits of Rs.6,31,87,950/-, added unexplained cash credits of Rs.14,21,22,719/- as well as...