Bogus Purchase Addition Limited to Profit Element Only: ITAT Chennai

ACIT Vs EI Instrumentation Pvt. Ltd. (ITAT Chennai) Bogus Purchase Allegation Diluted: ITAT Upholds GP-Based Addition Where Sales Accepted and Adverse Material Not Confronted The Chennai Bench of the ITAT, in ACIT v. EI Instrumentation Pvt. Ltd. (AY 2018-19), dismissed the Revenue’s appeal against restriction of addition on alleged bogus purchases. The AO had reopened the assessment based on Investigation Wing information alleging accommodation bills from M/s Barbrik Consultancy Pvt. Ltd. and disallowed the entire purchase amount of ₹1.21 crore under section 69C, despite the assessee produ...