Bogus Purchases: Bombay HC upholds addition of 12.5% of purchases

PCIT Vs SVD Resins & Plastics Pvt. Ltd. (Bombay High Court) In the case of PCIT Vs SVD Resins & Plastics Pvt. Ltd., the Bombay High Court addressed an appeal by the revenue challenging the Income Tax Appellate Tribunal’s (ITAT) decision concerning the genuineness of purchase transactions under Section 69C of the Income Tax Act. The dispute involved purchases amounting to ₹1.34 crores from suppliers identified as non-genuine by the Sales Tax Department. The Assessing Officer (AO) added this amount to the assessee’s income, questioning the legitimacy of the purchases. The C...