Bogus Purchase Addition Restricted to 5% as Sales Accepted & Banking Trail Proven: ITAT Mumbai

Karamtara Engineering Limited Vs DCIT (ITAT Mumbai) Bogus Purchase Addition Restricted to 5% – Sales Accepted & Banking Trail Proven – Full Disallowance Not Sustainable – ITAT Mumbai AO treated purchases as bogus based on Sales Tax Dept information, non-service of notices u/s 133(6) and non-compliance of summons, and made 100% addition. CIT(A) restricted addition to 5% in some AYs while dispute continued for other years. Assessee demonstrated ledger accounts, invoices, delivery challans, goods inward notes and banking payments; sales were accepted and books were not rejected. ITAT he...