Bogus Purchase: ITAT Mumbai restricts profit element of purchases at 4%

Advertisement JMD Corporation of India Limited Vs ITO (ITAT Mumbai) In a recent decision by the Income Tax Appellate Tribunal (ITAT) Mumbai, the case of JMD Corporation of India Limited vs Income Tax Officer (ITO) for the assessment year 2011-12 has drawn attention. The appeal focused on the disallowance of purchases amounting to Rs. 173,86,509, with the ITAT Mumbai ultimately restricting the profit element of these purchases to 4%. Here’s a comprehensive overview of the case. Background The dispute originated from the Income Tax Department’s suspicion of bogus purchases made by...