ITAT Mumbai Restricts Bogus Purchase Addition to 6%; Full 69C Disallowance Set Aside

Maharashtra Corporation Limited Vs ITO (ITAT Mumbai) Bogus Purchases—Full 69C Disallowance Set Aside: ITAT Mumbai Restricts Addition to 6% Despite Kanak Impex The Mumbai ITAT (A-Bench) partly allowed the assessee’s appeal for AY 2017-18, holding that a 100% disallowance of alleged bogus purchases under Section 69C was not sustainable on the facts. While the AO and CIT(A) had added the entire ₹10.23 crore based largely on a director’s statement (sale-in-transit) and reliance on Kanak Impex, the Tribunal found that documentary evidence remained uncontroverted—purchase invoices, banking...