Death of Assessee & Missing Records: Mumbai ITAT Limits Bogus Purchase Addition to 8% Profit Element

Sheetal Parag Dusane Vs ITO (ITAT Mumbai) Death of Assessee, Missing Records & Accepted Sales- Mumbai ITAT Restricts Bogus Purchase Addition to 8% Profit Element The Mumbai ITAT held that where the assessee’s sales, manufacturing activity and audited books were substantially accepted, the entire alleged bogus purchases could not be added u/s 69C merely because the suppliers were identified as hawala dealers by the Sales Tax Department. The Tribunal restricted the addition to 8% of the disputed purchases, holding that only the profit element embedded in such transactions could be taxed. T...