Bogus Purchases: ITAT Mumbai Restricts Addition to 5% Where Sales Are Undisputed

Niraj Pravinchandra Doshi Vs ITO (ITAT Mumbai) Bogus Purchases: ITAT Mumbai Restricts Addition to 5% Where Sales Are Undisputed The Mumbai ITAT (SMC Bench) partly allowed the appeal of the assessee for AY 2009-10 concerning estimated additions on account of alleged bogus purchases. The Assessing Officer had treated purchases from six parties as non-genuine based on information from the Investigation Wing/Sales Tax Department and made an addition at 12.5% of such purchases, amounting to ₹39.17 lakh. The CIT(A) upheld the addition in a brief order. Before the Tribunal, the assessee did not pre...