Bogus Purchase Addition Can’t Be 100% When Sales Are Accepted: ITAT Mumbai

Jagruti Jatin Shah (Deceased) Vs ITO (ITAT Mumbai) Bogus Purchase Addition Can’t Be 100% When Sales Are Accepted: ITAT Orders GP-Based Estimation The Mumbai ITAT held that where the Revenue accepts the sales declared by the assessee, it is generally not permissible to disallow the entire amount of alleged bogus purchases. At best, only the profit element embedded in such purchases can be brought to tax. Accordingly, the Tribunal restored the matter to the Assessing Officer for fresh adjudication in line with the Bombay High Court’s decision in Mohommad Haji Adam & Co.. The case...