AO Must Apply Three-Year Gross Profit Instead of Treating Sales as Bogus: ITAT Delhi

Goodone Traders Private Limited Vs CIT (Appeals) (ITAT Delhi) ITAT Delhi: Bogus Sales Addition under Section 68 Remanded — AO to Apply Average 3-Year Gross Profit Rate Instead of Taxing Entire Sales Assessee filed its return declaring ₹4.46 crore for AY 2014-15, which was originally assessed u/s 143(3) on 07.12.2016. Later, based on information flagged by the DIT (Systems) through the “Insight Portal” indicating bogus import transactions investigated by the Enforcement Directorate (ED), AO reopened the assessment u/s 147. A notice u/s 148 was issued on 30.06.2021 (validated later as pe...