Bogus Purchases: ITAT reduces addition to 2% of bogus purchases

Prateek Gupta Vs DCIT (ITAT Mumbai) The issue under consideration is whether the addition made by CIT(A) on account of bogus purchases at rate of 12.5% of purchase u/s 69C is justified in law? ITAT states that,  in assessee’s own case for the A.Y.2010-11 dated 04/04/2018 wherein under similar facts and circumstances alleged bogus purchases from one of the parties i.e. Sai International Impex was found, and the Tribunal after considering all the facts and circumstances restricted the same to the extent of 2% after observing that from the record, Tribunal found that 25% of purchases alleged t...