Addition restricted to profit element in case of bogus purchases as sales not doubted

ITO Vs Balajay Infrastructure Pvt. Ltd. (ITAT Ahmedabad) ITAT Ahmedabad held that in case of bogus purchases, if the sale is not in doubt, then only the profit element embedded in such purchases should be subject to tax in the hands the assessee. Accordingly, CIT(A) restricting disallowance to 25% of the addition justified. Facts- AO had received the information from the Investigation Wing that it had conducted a search in the case of M/s. Tricon Construction on 5.12.2012. M/s. Tricon Construction had obtained bogus bills for material and labour. The Investigation Wing had identified bogus bil...