Bogus Purchase Addition Restricted as Only Profit Element Was Taxable: Gujarat HC

PCIT 1 Vs Surya Impex (Gujarat High Court) The Gujarat High Court considered an appeal filed by the Revenue challenging the Income Tax Appellate Tribunal (ITAT), Surat order dated 28.03.2022 relating to Assessment Year 2009-10. The appeal arose from reassessment proceedings in which additions had been made on account of alleged bogus purchases. Background of the Case The assessee filed its return of income on 29.09.2009, declaring a total income of Rs.1,17,752, and the original assessment under scrutiny was completed on 28.12.2010, determining total income at Rs.2,16,900. Subsequently, based o...