Bogus Purchase Addition Restricted to Profit Element @6.5% Commission Disallowance Deleted – Delay Condoned – ITAT Mumbai

Mahendrakumar Danmal Mutha Vs ITO (ITAT Mumbai) The Tribunal first condoned a delay of 356 days in filing appeal, accepting the assessee’s explanation that the CIT(A) order was missed due to delivery into spam folder and that he acted promptly upon discovering it. On merits, the AO had treated purchases of ₹34.08 lakh from certain parties listed as hawala dealers as non-genuine and disallowed commission expenses of ₹14.18 lakh. The CIT(A) confirmed both additions. ITAT observed that the assessee maintained quantitative records, sales were accepted, books were not rejected and payments we...