Bogus Purchase Addition Limited to Profit Element Due to Accepted Sales: ITAT Mumbai

ITO Vs Anil Transport Service (ITAT Mumbai) The appeal before the Tribunal arose from an order passed by the Commissioner of Income Tax (Appeals) [CIT(A)] for Assessment Year 2009–10, concerning additions made on account of alleged bogus purchases and disallowance of expenses. The assessee, a partnership firm, had declared total income of ₹19,78,876, reporting sales of ₹4.53 crore and purchases of ₹3.57 crore. The Assessing Officer (AO), based on information from the Investigation Wing and statements recorded during search proceedings in related group concerns, alleged that the assesse...