Bogus purchases- Only profit element can be added to Income

ITO Vs M/s Ami Riddhi Chem Private Limited (ITAT Mumbai) The assessee claim to have made purchases of Rs.34,92,40,689/-, therefore, the assessee was asked to furnish the details of purchases made from these parties. The notices issued/served under section 133(6) of the Act, however, there was no reply from the concerned parties. The facts are that neither the parties were produced nor the transaction was substantiated with positive material therefore, the Ld. Assessing Officer made the addition at the rate of 12.5% of such bogus purchases. On appeal, before the Ld. Commissioner of Income Tax (...