Addition unwarranted as GP rate on sale of alleged bogus purchases is more than GP rate of other purchases

Aashna Diamond Vs ACIT (ITAT Mumbai) ITAT Mumbai held that addition towards bogus purchases unwarranted as GP rate on sale of alleged bogus purchases is more than the GP rate of other purchases. Accordingly, appeal allowed the addition deleted. Facts- The assessee is a trader, importer and exporter of diamonds. The Revenue carried out search and seizure operations in the hands of Shri Rajendra Jain/Sanjay Choudhary/Dharmi Chand Jain and his group of companies on 03-10­2013. It was noticed that the above said group were providing only accommodation entries, inter alia, in the form of bogus sal...