Bogus Purchase Addition Restricted to 10% – CIT(A) Relief Upheld

ACIT Vs Arjun Enterprises Pvt. Ltd. (ITAT Delhi)

The ITAT Delhi dismissed the Revenue’s appeal and upheld the order of the CIT(A) granting substantial relief to the assessee in a scrutiny case involving alleged bogus purchases and multiple disallowances. The AO had treated certain sundry creditors and purchases as unexplained u/s 68 due to lack of confirmations and made additions along with disallowances of interest, TDS, liabilities and expenses.

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