Bogus purchase addition restricted to extent of gross profit rate

Shah Traders Vs DCIT (ITAT Mumbai)

ITAT Mumbai held that the addition in respect of bogus purchases is to be limited to the extent of bringing the gross profit rate on such purchases at the same rate as of other genuine purchases. Accordingly, matter restored to file of AO with direction to restrict addition.

Facts- Reassessment proceedings under section 148 of the Income Tax Act were initiated against the assessee on the basis that the assessee has obtained accommodation entry of bogus purchases from M/s Swastik Corporation. AO vide order dated 27/05/2023 p

Please become a Premium member. If you are already a Premium member, login here to access the full content.