Bogus purchases- Entire purchases cannot be added to total income of assessee

ACIT Vs M/s. Technotrade Impex India Pvt. Ltd (ITAT Mumbai) When total sale was accepted by the AO, then, the entire purchases could not be added to the total income of the assessee. If there was case of bogus purchases then only profit element embedded in such purchases was to be added, not the total purchases made from those parties. Hence, the addition made by the CIT (A) regarding adopting the profit element at 8% on garden item trading segment and 12.5% on garden maintenance segment in estimating the profit element on the purchases made by the assessee was sustained. FULL TEXT OF THE ITAT...