Bogus Purchases: Bombay HC upholds 100% of addition under Section 69C

PCIT Vs Ganesh Developers (Bombay High Court) The Bombay High Court addressed an appeal by the revenue concerning alleged bogus purchases made by Ganesh Developers, a real estate firm, during the assessment year 2010-11. The Assessing Officer (AO) had initially added a significant sum under Section 69C of the Income Tax Act, 1961, due to unexplained expenditures related to these purchases. The Commissioner of Income Tax (Appeals) [CIT(A)] partially allowed the assessee’s appeal, deleting additions for most suppliers but retaining 12.5% of the additions for purchases from M/s Neptune Trad...